Mercedes-Benz Group AG is moving ahead with plans to buy a stake in Chongqing Qianli Technology, a Chinese company specializing in self-driving car systems, Bloomberg reported on Wednesday. The move is aimed at strengthening the German luxury automaker’s software capabilities in the world’s largest auto market.
People familiar with the matter said Mercedes intends to acquire less than half of Qianli, which was valued at about $8.35 billion (59.5 billion yuan) as of this week. The deal could be announced in the coming days, though the sources asked not to be identified as the talks remain private.
Qianli is partly owned by Geely Holding Group, which folded its own autonomous driving division into the company to serve as its main smart car technology unit. The potential deal would extend collaboration between Geely and Mercedes, which are also discussing a partnership in combustion engine development.
German automakers have been stepping up local alliances and tailoring products for Chinese consumers to better compete with domestic rivals such as BYD and Xiaomi. Sales of luxury EVs from German brands have been weighed down by price competition in China’s fast-growing market.
Separately, Volvo Cars said it plans to build a new hybrid model in the United States before 2030, as automakers adapt to U.S. tariffs on imported vehicles under President Donald Trump’s trade policies. The yet-to-be-disclosed vehicle will be aimed at U.S. buyers and help boost output at Volvo’s South Carolina plant, which has capacity for 150,000 vehicles annually but remains underutilized.
Volvo confirmed earlier this year it would shift more production to the U.S., including plans to manufacture the XC60 SUV in South Carolina from late 2026. The facility currently produces the EX90 electric SUV and Polestar 3.