Daimler forms joint venture with Geely to develop electric cars in China
The Germany-based automotive manufacturer, Daimler, is set to develop its next generation of Smart electric cars in China following a joint venture with Geely, according to Reuters.
On Thursday (28 March), Daimler confirmed it would develop the next generation of Smart-branded city cars at a purpose-built factory in China as it planned to share its expertise in manufacturing, engineering and design with Geely.
Under the agreement, the next generation of Smart cars are set to be assembled at a Chinese plant, with sales expected to begin in 2022.
According to CNN Business, CEO Dieter Zetsche wrote in a blog: “Our smallest vehicle still has huge potential – in China and beyond. Geely is the right partner to take advantage of these opportunities.”
It is expected that Daimler and Geely will each own 50% of the global joint venture with financial terms of the deal left undisclosed.
Due to the high cost of electric car batteries making it more difficult for automakers to develop affordable zero-emission vehicles, it has led to a number of them forming alliances with Chinese partners.
The news follows Daimler’s competitors BMW unveiling plans to develop Minis in China with low production costs and the demand in small electric cars increasing.
SAP Whitepaper: Advantages of Intelligent Assets
A core pillar in SAP’s Industry 4.0 strategy, Intelligent Assets equip organisations to reduce downtime, empower employees and increase efficiencies across industrial equipment and manufacturing units.
In a whitepaper produced in partnership between SAP and BizClik Media Group, Rachel Romanoski, Solutions Manager, Digital Assets, SAP, dispels some of the myths surrounding asset intelligent, and shares insight into how even small investment in asset intelligence can pay dividends in minimising cost leakage and realising an asset’s potential.
As with all innovations, the ceiling for Intelligent Assets is as high as an organisation can dream, afford and implement. But Romanoski says that just a little intelligence can go a long way: “Oftentimes people think Intelligent Assets need to be the latest and greatest cutting-edge technology. They can be super advanced, such as leveraging physics-based engineering simulations to forecast potential failures, and help mitigate them. But it could be as simple as a temperature reading. You can pull a lot of simple information from most equipment, and by enhancing that data through ancillary solutions and digital capabilities, you can create that Intelligent Asset.”
One of the most immediate benefits is reducing or, in some cases, eliminating unplanned downtime. Equipment failure is one of the most common causes of disruption and can cause chaos throughout the supply chain.
“The true power of the Intelligent Asset is in changing the basic, reactive emergency work or time-based, planned maintenance and being more prescriptive and tailored to that specific asset and use case,” Romanoski says. “Ultimately, you can reduce the unplanned events that often carry a big price tag.”
"Oftentimes people think Intelligent Assets need to be the latest and greatest cutting-edge technology... But it could be as simple as a temperature reading"
Other financial benefits include stemming cost leakage and “sweating assets” to the full potential. “Maybe you can consider the lifecycle of the asset and understand whether you can push it a little bit further,” Romanoski explains. “It might be that the best course of action for a low-cost item is to run it to failure. Having this information that we collect over time empowers those people to make those better decisions, but also has a trickle down effect to building resiliency and efficiency into the entire supply chain.”
To read the full report, including insight from Intelligent Assets, Intelligent Factories, Empowered People, and exclusive insight from Dominik Metzger, the lead on SAP’s Industry 4.0 programme, CLICK HERE.