Baidu and Geely work together to build electric cars

Baidu and Geely work together to build electric cars

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Baidu is creating a business to manufacture intelligent electric motors, he said in a statement on Monday. Geely (BODY)Baidu, the largest privately owned carmaker in China, will invest as a strategic partner.
The new company will use Baidu’s autonomous driving technology and Geely’s modular platform for electric vehicles, Baidu (BIDU) said. Geely confirmed the news in a separate statement on Monday.

Car manufacturers are increasingly open to collaboration with competitors and technology companies as they face the major challenge of tackling the internal combustion engine around the climate crisis. The investment needed to develop electric cars has helped fuel a wave of partnerships, with companies working together to spread the cost.

Baidu’s car business will focus on passenger vehicles on Monday and operate as an independent subsidiary, he said. Baidu will also utilize its artificial intelligence capabilities and mapping systems.

Geely, who owns Volvo, said in a statement that the company was trying to focus on “intelligent, electric transport” from a carmaker to a “technology enterprise”.

People visit the Baidu stand during an exhibition in 2019 in Fuzhou, China.

No further details about the partnership were released.

Shares in Geely hit a record high on Monday before closing at 2.6%. The share rose nearly 20% on Friday, the best day since November 2008, after Reuters reported that the company would partner with Baidu.

Baidu shares closed higher on Wall Street last Friday, up 16% to $ 240.25.

Jill Disis contributed to this report.

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