
Core Insights - Mercedes is collaborating with Geely's subsidiaries, Yikaton and Meizu, to integrate the Flyme Auto system into its vehicles, starting with the long-wheelbase E-Class set to launch in 2027, aiming to enhance its smart technology capabilities in the Chinese market [1][2][5] Group 1: Collaboration and Product Development - The first model to feature Flyme Auto was the Lynk & Co 08 EM-P, launched in 2023, which has contributed to improving sales and brand reputation for Geely [2][3] - Flyme Auto has been adopted in 23 Geely models as of May 2023, with total sales exceeding 1.16 million units by mid-June 2023 [4][5] - The partnership with Geely is a strategic move for Mercedes to maintain competitiveness in the fuel vehicle segment in China, where it has faced declining sales [5][6] Group 2: Market Performance and Challenges - Mercedes reported a nearly 7% year-on-year decline in new car deliveries in China for 2024, with a 14% drop in the first half of the year [3][6] - The collaboration with local suppliers like Meizu and Yikaton is part of Mercedes' strategy to adapt to the rapidly evolving smart technology landscape in China [10] - The upcoming MB.OS system, set to launch in 2025, aims to enhance the user experience with features like continuous updates and advanced AI capabilities, but current fuel models cannot support this system [7][9] Group 3: Technological Advancements - Flyme Auto features a 7nm chip, supporting seamless integration of mobile and automotive functions, which is a significant upgrade for Mercedes' existing systems [3][8] - The third-generation MBUX system in current Mercedes models includes advanced features like a voice assistant with improved response times and enhanced navigation capabilities tailored for the Chinese market [6][8] - The collaboration with local tech firms is seen as a necessary step for Mercedes to keep pace with domestic brands that are rapidly advancing in smart vehicle technology [10]