Address

Precise Investors

Thursday, June 17, 2021
Latest News

Baidu to set up smart EV company with car maker Geely

Baidu

Baidu said the new company will count on Baidu’s intelligent driving capabilities and Geely’s car manufacturing expertise

China’s search engine giant Baidu Inc said on Monday it will set up a company to partner with car maker Zhejiang Geely Holding Group to make smart electric vehicles (EV), the latest move by a tech company in the fast-evolving sector.

Baidu, which has been developing autonomous driving technology and internet connectivity infrastructure, said the new EV company will count on Baidu’s intelligent driving capabilities and Geely’s car manufacturing expertise.

Geely will also be a strategic investor in the new company, which will be an independent subsidiary of Baidu, Baidu said in the statement.

Reuters reported Baidu’s plan to form a smart EV company with the help of Geely last week. Sources told Reuters Baidu would hold a majority stake and absolute voting power in the new firm and that Geely would have a minority stake.

Geely said in a separate statement on Monday the collaboration will be based on Geely’s EV-focused platform, Sustainable Experience Architecture (SEA).

Baidu’s move comes as many tech companies around the world are racing to develop smart cars, after Tesla Inc’s success in commercialising EVs.

Apple is pushing to design an electric vehicle and batteries, aiming at a possible 2024 launch, sources told Reuters last month.

Chinese ecommerce giant Alibaba has formed an EV joint venture with China’s biggest automaker SAIC Motor Corp while China’s Didi Chuxing is making EVs designed for ride hailing services with automaker BYD.

Baidu established its autonomous driving unit Apollo in 2017. The unit mainly supplies technology powered by artificial intelligence and works with automakers such as Geely, Volkswagen AG, Toyota Motor Corp and Ford Motor.

Baidu operates autonomous taxi service Go Robotaxi with safety drivers on board in Beijing, Changsha and Cangzhou, and plans to expand to 30 cities in three years, which analysts say is a potential scenario for Baidu to eventually commercialise its autonomous driving technologies. It gained approval last week to test five cars in Beijing without safety drivers.

Important:

The articles are for information purposes only and Precise Investors shall not be held responsible for any errors, omissions or inaccuracies within it. Any rules or regulations mentioned within the website are those relevant at the time of publication and may not be the most up-to-date.

Precise Investors does not endorse any of the products or services that appear on it or are linked to it and are not liable for any action that you may take as a result of the content of this website, or losses or damage you may incur doing so.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Please remember that investments of any type may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

Leave a Reply

fourteen + four =