Baidu and Geely team up to build electric cars

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Baidu is setting up a company to make smart electric cars, he said in a statement Monday. Geely (BODY), China’s largest private automaker, will invest as a strategic partner, Baidu added.
The new company will use Baidu’s autonomous driving technology and Geely’s modular electric vehicle platform, Baidu (START) said. Geely confirmed the news on Monday in a separate statement.

Automakers are increasingly open to collaboration with rivals and tech companies as they seriously begin to take on the enormous challenge of ditching the internal combustion engine to tackle the climate crisis. The investment needed to develop electric cars has helped spark a wave of partnerships, with companies teaming up to share the costs.

Baidu’s auto company will focus on passenger vehicles and operate as an independent subsidiary, according to its statement on Monday. Baidu will also use its artificial intelligence capabilities and mapping systems.

Geely, owner of Volvo, said in its statement that the company was trying to move from being an automaker to “a technology company” focused on “intelligent electric transportation.”

People visit the Baidu booth at a 2019 exhibition in Fuzhou, China.

No other details about the partnership were released.

Geely shares hit a record high on Monday before closing down 2.6%. The stock climbed nearly 20% on Friday, its best day since November 2008, after Reuters said the company would team up with Baidu.

Baidu shares closed higher last Friday on Wall Street, up 16% to $ 240.25.

Jill Disis contributed to this report.

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