Daimler to develop Smart brand together with Geely

A Smart Fortwo Cabrio Electic Drive car is plugged at a recharging station during the 87th International Motor Show at Palexpo in Geneva, Switzerland, March 8, 2017. REUTERS/Arnd Wiegmann/Files

FRANKFURT/BEIJING: Daimler will build its next generation of Smart electric cars in China through a joint venture with Geely, as a way to increase economies of scale in a market segment that is struggling to turn a profit. 

China's Geely built a stake of almost 10% in Daimler last year, saying it wanted to forge an alliance to develop electric and self-driving cars to better compete against new competitors such as Uber and Google.