The Chinese division of Mercedes-Benz announced that the upcoming third-generation Mercedes-Benz CLA sedan will be equipped with Chinese gasoline engines. We are talking about a two-liter turbo four with a capacity of up to 250 hp, which will be produced from 2026 by Horse Powertrain, that is, a joint venture between Renault and Geely, announced back in 2022 and launched last spring. It was stated that the engines will be supplied to the conveyor from China, but the neutralization system will be installed on site. The debut of the new CLA is expected in 2025, and the range will include mild hybrids, plug-in hybrids and electric vehicles.
Why would Mercedes replace its own similar M260 engine with a product of a joint venture, of which it is not even a part? Firstly, it is certainly profitable financially. And secondly, Mercedes has long had strong ties with both Renault and Geely. For example, the 1.3 turbo engine for junior front-wheel drive models was developed and produced jointly with Renault, and the Mercedes-Benz Citan “heel” is a re-badged Renault Kangoo, and this is not to mention the already closed projects (for example, smart forfour). In turn, the oldest automaker is related to Geely by the smart brand, which has become a joint venture of these companies. It is also worth remembering that 9.7% of the shares of Mercedes-Benz AG belong to the founder and owner of Geely Li Shufu through his investment fund.
Chinese smart #5
By the way, the cooperation between Renault and Geely is not limited to the engine joint venture. The Korean division of Renault is switching to the production of modified Chinese cars: the first-born last summer was the Renault Grand Koleos crossover, made from the Geely Monjaro. In addition, there are rumors that the development of the future budget electric car Renault for Europe is also being carried out jointly with Geely (so far only the Chinese origin of the partner has been officially confirmed). Information has already appeared about the imminent opening of a Renault technical center in Shanghai. At the same time, the French have no plans to enter the local market, and the new team of engineers will be engaged in the creation of electric cars exclusively for the European market.
Thus, a new triple alliance of Mercedes-Benz, Renault and Geely is emerging in the automotive world. Moreover, the Chinese side, which has already eaten a dog on electric cars, will be responsible for the technical component, and in the development and production of internal combustion engines it will not be held back by European regulations.