Mercedes-Benz and NIO explore EV tech partnership

One other German automaker could also be trying to China for electrical automobile tech. A brand new report claims that Mercedes-Benz and NIO have mentioned a possible EV tech partnership.

The report from Reuters states two folks accustomed to direct information of the matter declare the automakers have had “exploratory talks” the place Mercedes-Benz would spend money on Chinese language EV maker NIO to entry its expertise.

William Li, NIO’s founder, and Mercedes-Benz CEO Ola Kaellenius mentioned a possible partnership earlier this 12 months.

Whereas NIO appears to enhance its monetary state of affairs, Mercedes may gain advantage from sharing tech and assets with the pioneering EV maker.

The sources say discussions didn’t get so far as which expertise could be exchanged and if or how a lot funds could be invested. One supply stated NIO was the one which approached Mercedes however confronted resistance from inner discussions inside the German automaker and that it was “extremely seemingly it might not proceed.”

NIO reportedly denied the claims, saying it was “unfaithful.” Though Mercedes famous there have been no present plans to collaborate, they stated, “Ola Kaellenius is in an ongoing common dialogue with numerous business leaders and friends, together with William Li.”

Is a Mercedes-Benz, NIO EV tech partnership coming?

The sources stated Mercedes’ R&D and technique groups largely opposed the partnership, saying it may harm the model’s picture.

There may be a battle of curiosity with Chinese language buyers, together with BAIC Group and Li Shufu, being the 2 largest Mercedes shareholders.

In the meantime, Mercedes-Benz needs to speed up EV gross sales in China to enhance market share. NIO, which ranks ninth amongst EV and hybrid automakers in China, goals to develop in-house parts like batteries and chips.

Extra just lately, NIO launched its first smartphone, a transfer that many analysts argue may stretch the EV maker too skinny. NIO’s automobile gross sales, income, and gross margins all fell within the second quarter as NIO transitioned its autos to its next-gen platform.

NIO’s losses reached $835.1 million in Q2, up practically 120% from final 12 months. The climbing losses come amid an ongoing worth warfare in China, the place NIO cut prices in June.

Regardless of the hurdles, NIO’s Li expects “strong progress in automobile deliveries within the second half of 2023.” The EV maker launched a number of new fashions over the previous few months, together with the brand new ES6, EC6, and ET5 Touring electrical station wagon.

NIO ended the quarter with about $1.8 billion in money and equivalents (excluding restricted money, investments, receivables, and stock), down from round $2.7 billion on the finish of 2022.

Electrek’s Take

Though NIO is denying the claims, it could possibly be mutually helpful. Mercedes is reportedly already trying to China’s BYD to energy new EVs with its Blade batteries to cut back prices and higher compete with automakers like Tesla within the area.

With NIO’s formidable enlargement plans, together with software program and {hardware}, it may use a strong monetary backer. The EV maker is making an attempt to navigate a worth warfare in its residence market whereas increasing into abroad markets with new fashions.

One other German automaker, Volkswagen, invested $700 million into China’s XPeng for an almost 5% stake to develop new fashions.

Will Mercedes-Benz and NIO be the subsequent German-Chinese language EV tech tie-up? What do you guys suppose? Tell us within the feedback. We’ll hold you up to date with the newest on the state of affairs.