German automaker to use Chinese electronic architecture and low-cost methods for new generations of A-Class and GLA models
Mercedes-Benz is moving much of the development of its compact models to Asia. In a strategic alliance with Geely, the German automaker plans to have future generations of its entry-level vehicles created under Chinese supervision. The objective is clear: to unite the prestige of the German brand with the production efficiency and mastery in electrification of the oriental manufacturer.
Under the new arrangement, Mercedes’ department in China will take the lead in the engineering of popular models such as the A-Class, B-Class, CLA, as well as the GLA and GLB SUVs. Meanwhile, the German parent company will remain focused on the development of medium and large vehicles, preserving the Germanic DNA at the top of the luxury pyramid.
SEE ALSO:
Internally named the “Phoenix” project, the initiative is scheduled to start production in 2030. The new fleet will use Geely’s GEEA electrical and electronic architecture, already used in the EX5 utility. The versatility of this platform is one of the pillars of the partnership, allowing Mercedes to offer both purely electric versions and variants equipped with internal combustion engines, adapting to the global energy transition.
The decision was not made at random. Since the beginning of 2026, German executives have maintained an intense routine of visits to Geely’s Research and Development hub in Hangzhou Bay. Mercedes’ interest was intensified after a reverse engineering process with the Zeekr 001, the Chinese group’s model. When dismantling the vehicle, the German engineers were impressed by Geely’s ability to deliver high construction quality at significantly lower costs than European standards.
With the partnership, Mercedes hopes not only to reduce operating expenses, but also to accelerate its response time in an increasingly competitive and electrified compact market.
