Nio And Mercedes-Benz In Early Talks For Potential Technology Swap: Report

Nio Inc NIO and Mercedes-Benz MBGAF have been in preliminary discussions about a potential collaboration, as per insiders acquainted with the situation.

The collaboration might witness the German automotive powerhouse investing in the Chinese electric vehicle (EV) firm, with the promise of technology exchange.

Earlier this year, William Li, the founder and CEO of Nio, had a conversation about this prospective alliance with Mercedes' CEO Ola Kaellenius, reported Reuters. 

However, the specifics of the technological transfer or financial involvement never reached an advanced stage.

One source mentioned that Nio initiated the partnership proposal and that there have been hints of internal resistance to this idea within Mercedes-Benz.

The exact timeline for a decision on this collaboration remains uncertain.

While Nio debunked the claims of any talks about collaboration with Mercedes, labeling them as "untrue." Mercedes separately told Reuters they currently have no collaboration schemes with Nio. 

These potential talks underscore a growing trend of ties between traditional automakers and novel entrants in the automobile domain.

Chinese EV startups, often cash-strapped, are showcasing their innovations, hoping to be bought by established players.

This not only aids in surviving in a tightening domestic market but might also assist in smoothly navigating potential international trade hurdles. Meanwhile, long-standing car manufacturers are reorienting themselves to stay competitive with entities like Tesla Inc TSLA and other Chinese firms, especially as EV uptake escalates worldwide.

As an example, Volkswagen AG VWAGY had previously made moves by entering into agreements that facilitated the joint development of new car models for the Chinese market. 

Price Action: NIO shares closed higher by 2.84% at $8.70 on the last check Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.