Mercedes-Benz Group AG is moving forward with plans to purchase a stake in a Chinese company that builds self-driving car technology. The luxury German car maker wants to buy part of Chongqing Qianli Tech, a company in Shanghai that creates systems for cars that can drive themselves. Sources familiar with the matter say Mercedes wants to get better at making software for cars sold in China. Mercedes is set to buy less than half of Qianli, according to sources who did not want their names used because the discussions are private. As of Wednesday, Qianli was valued at about $8.35 billion (59.5 billion yuan). The two companies might make their deal public this week, the sources said. Geely-Mercedes partnership grows in China Geely Holding Group owns a big piece of Qianli and has been working to get Mercedes involved in the deal . Geely moved its own self-driving car division into Qianli, making it the main company for Geely’s future smart car technology. This investment shows that Geely and Mercedes are working together more closely. The two companies are also talking about working together on regular gas engines, though those talks are still in early stages. German car companies are changing how they do business in China. They are making stronger partnerships with local companies and building cars designed just for Chinese buyers. This helps them compete with fast-growing Chinese car makers like BYD and Xiaomi. Sales of luxury electric cars from German companies have been slow because of tough competition that has pushed down prices of regular cars. Volvo to build hybrid car in U.S. amid tariff pressures Meanwhile, Volvo Cars said it will start making a new hybrid car in the US before 2030. The Swedish car maker is adjusting to Donald Trump’s policies that put extra costs on foreign cars. The new car, which Volvo has not described in detail yet, will be made specifically for American buyers. It will also help Volvo use more of its South Carolina factory’s ability to make cars. Car companies around the world are changing where they build cars because of President Trump’s extra charges on foreign vehicles. These policies are part of his bigger plan to help American manufacturing grow. Volvo’s top executive said in April that the company would make more cars in America. In July, Volvo announced it would start building its best-selling XC60 SUV in South Carolina starting in late 2026. Right now, the factory only makes Volvo’s EX90 electric SUV and the Polestar 3. Yet, numbers show these cars use only a small part of the plant’s ability to make 150,000 vehicles each year. Get up to $30,050 in trading rewards when you join Bybit today
