BEIJING (Reuters) – China Baidu Inc. plans to set up a company to make smart electric vehicles (EVs), said two sources familiar with the matter, with manufacturing to be done at plants owned by the automaker Geely.
Baidu, the leading inspection engine company in China, will take a majority share and total voting power in the new company.
The initiative will renovate some of Geely’s existing car manufacturing facilities to make the vehicles, with the installation of car software from Baidu and engineering expertise from Geely, sources told Reuters.
The companies are in talks to use the Geely platform, which aims to use EV, Sustainable Knowledge Architecture (SEA), for future product development, said one of the sources, which declined to be identified by that the plan was private.
Baidu, which is developing autonomous drive technology and internet connection infrastructure, did not immediately respond to a request for comment. Geely declined to comment.
Baidu shares on the Nasdaq list jumped more than 4% after Reuters reported on the plan.
Reuters had already reported last month that Baidu was considering making its own EVs and had held talks with Geely, Guangzhou Automobile Group Co. Ltd (GAC) and Hongqi China FAW Group Corp Ltd. on a possible campaign.
Baidu’s rival, Alibaba, has formed an EV joint venture with China’s largest automaker SAIC Motor Corp. while China’s Didi Chuxing makes EVs designed for towing services with BYD. Inspired by Tesla Inc.’s success in commercializing EVs, internet giants including Tencent Holdings Ltd, Amazon.com Inc. and Alphabet Inc, have also developed or invested in automation-related technology. made in a smart starter car. People familiar with the matter said last month that Apple is pushing to design an electric vehicle and batteries, aiming for a possible 2024 announcement.
Hangzhou-based Geely, the top-profile automaker in China as a result of group investments in Volvo Cars, Daimler AG and Malaysia’s Proton, is expanding EV production. Its flagship listed company, Geely Automobile, aims to sell 1.53 million vehicles this year.
Reciting with Yingzhi Yang, Yilei Sun and Brenda Goh; Edited by Jan Harvey, Kirsten Donovan