Mercedes-Benz turns to Geely expertise to compete with China production pace

"Chinese speed" sets a new pace in Stuttgart: Mercedes-Benz and Geely partner to revolutionize production times

In a historic move that signals a paradigm shift in the global auto industry, Mercedes-Benz has intensified negotiations with Chinese giant Geely. The goal? Drastically reducing the development time for new models, from the European standard of five years to the Chinese standard of less than 24 months.

The automotive world is running out of patience. While traditional manufacturers in the West still follow long and meticulous production cycles, new players in China are launching models at a pace that leaves the rest of the world behind. For Mercedes-Benz, the solution to staying relevant in an era of software and electrification seems to come from one of its largest shareholders: Geely.

Project "Phoenix" and the shift of the center of gravity to China

According to recent market information, Mercedes-Benz is working on a new electric vehicle platform, codenamed “Phoenix.” For the first time in the brand’s more than 130-year history, primary responsibility for developing a global platform has been delegated to the R&D center in China, not Germany.

This platform will use the Geely Electronic and Electrical Architecture (GEEA 4.0), a cutting-edge technology that enables ultra-fast software updates and simpler component integration. The project aims to replace the current Mercedes Modular Architecture (MMA) platform and will support future generations of compact models such as the A-Class, B-Class, GLA and CLA.

Who is Geely, the Germans' strategic partner?

Founded in 1997 by entrepreneur Li Shufu, Geely (Zhejiang Geely Holding Group) has rapidly evolved from a local refrigerator parts manufacturer to one of the most powerful players on the global automotive scene. Geely is not just a brand, but an empire that owns or controls brands such as Volvo, Polestar, Lotus, Zeekr, Lynk & Co and owns 50% of the Smart brand (in a joint venture with Mercedes).

Moreover, Li Shufu is one of the main shareholders of the Mercedes-Benz Group (formerly Daimler), owning almost 10% of the company's shares. Geely's expertise in modular platforms and the software that enables "Chinese speed" is exactly what Mercedes-Benz is looking for to streamline costs and processes.

5 years versus 2 years: The eloquent example of the S-Class

The East-West divide is most visible in flagships. The seventh generation of the legendary Mercedes-Benz S-Class (W223) was launched in 2020. Although it is a benchmark of luxury, it took six years for the model to receive a major facelift, officially presented in early 2026. In this six-year period, a Chinese manufacturer like Nio or BYD could have launched two completely new generations or at least three derivative models.

“We are constantly looking for ways to make the research and development process as fast, better and more efficient as possible, both in China and globally,” a Mercedes-Benz official recently admitted. The target is clear: developing a model from scratch in a maximum of 24 months.

A European trend: The West learns from the East

Mercedes-Benz is not the only manufacturer that has understood that German engineering pride must be matched by Chinese agility:

• Volkswagen has partnered with XPeng to develop the ID. UNYX 08 model in just 24 months.
• Renault collaborates closely with Geely for the internal combustion engine division (Horse) and managed to develop the new electric Twingo in just 21 months.
• Stellantis (Peugeot, Fiat, Chrysler) bought a stake in Leapmotor to use their cheap and fast platforms.

Conclusion

If in the past China was the place where Western manufacturers took their outdated technology to sell in a developing market, today the wheel has turned. To survive, the giants from Stuttgart, Wolfsburg or Paris must borrow the digital "soul" from their Chinese partners. The extended partnership between Mercedes-Benz and Geely is not just a technical collaboration, but a recognition that, in a future dominated by software-defined vehicles, speed is as important as prestige.