Automakers are increasingly open to partnering with rivals and technology companies as they are serious about the daunting challenge of abandoning the internal combustion engine to tackle the climate crisis. The investment required to develop electric cars has sparked a wave of partnerships, with companies working together to spread costs.
Baidu’s auto company will focus on passenger cars and operate as an independent subsidiary, the statement said Monday. Baidu will also take advantage of its capabilities in artificial intelligence and card systems.
Geely, owner of Volvo, said in his statement that the company has sought to transform from an automobile manufacturer to a “technology company” focused on “intelligent electric transport”.
No further details about the partnership have been disclosed.
Shares in Geely hit a record high on Monday before closing 2.6%. The stock rose nearly 20% on Friday, its best day since November 2008, after Reuters reported that the company would partner with Baidu.
Baidu shares closed higher on Wall Street last Friday, up 16% to $ 240.25.
Jill Disis contributed to this report.