Core Viewpoint - Mercedes-Benz is actively working to enhance its smart technology capabilities by partnering with Geely's subsidiaries, Yika Tong and Meizu, to integrate the Flyme Auto system into its vehicles, starting with the long-wheelbase E-Class model set to launch in 2027 [3][4][10]. Group 1: Partnership and Product Development - Mercedes-Benz has collaborated with Yika Tong and Meizu to incorporate the Flyme Auto system into its vehicles, indicating a strategic move to address its shortcomings in smart technology [3][10]. - The first model to feature Flyme Auto will be the long-wheelbase E-Class, with expectations for its release in 2027 [4]. - Yika Tong, a subsidiary of Geely, focuses on creating a comprehensive automotive platform and has expanded its offerings to include smart driving and core components [6][7]. Group 2: Market Performance and Strategy - Mercedes-Benz's sales in China have been declining, with a nearly 7% drop in cumulative new car deliveries in 2024 and a 14% decline in the first half of the year [12]. - The partnership with Yika Tong and Meizu aims to halt this downward trend by enhancing the smart features of its vehicles [10][12]. - Flyme Auto has previously improved the user experience for Geely vehicles, suggesting potential benefits for Mercedes-Benz in terms of customer satisfaction and sales [13][14]. Group 3: Technological Advancements - Flyme Auto, launched in March 2023, features advanced capabilities such as a 7nm chip, seamless connectivity, and a user-friendly interface that integrates mobile and automotive functions [13][14]. - The upcoming Flyme Auto 2.0 version will further optimize AI and design aspects, enhancing the overall user experience [15]. - Mercedes-Benz's current vehicle lineup includes the third-generation MBUX system, which has been upgraded with new features to improve user interaction and navigation [18][19]. Group 4: Future Outlook - Mercedes-Benz plans to launch the new electric CLA in 2025, which will feature the new MB.OS operating system, aimed at improving update frequency and integrating advanced AI capabilities [21][22]. - The collaboration with local suppliers like Yika Tong and Meizu reflects Mercedes-Benz's strategy to adapt to the rapidly evolving smart technology landscape in China [26]. - The success of these partnerships will depend on the timely implementation of new technologies and meeting the high expectations of consumers accustomed to advanced smart features from domestic brands [27][28].

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]