Mercedes Holds Early Talks With China’s Geely to Deepen Venture

Mercedes-Benz Group AG has held early talks about deepening cooperation with China’s Geely, part of an effort to bolster vehicle development in its largest market, according to people familiar with the matter.

The early-stage discussions center on possible cooperation for models coming after Mercedes’s current generation of electric vehicles, the people said, asking not to be identified because the deliberations are private. Relying more on Geely may help Mercedes shorten development times and lower engineering costs in China, where domestic brands are surging ahead on speed and pricing.