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Geely seeks common ground and broader cooperation on carbon reduction among Chinese and German automakers. Author/Source: Date: 2022-11-09 Clicks: 18 Cooperation between Chinese and German companies is a current hot topic, with the automotive industry being a key focus of such cooperation. Geely Holding Group is a participant in and beneficiary of the economic development of both countries. Li Shufu, chairman of Geely Holding Group, recently expressed common ground with German automakers as well as further possibilities for cooperation in the future. Chinese and German automakers have maintained extensive and in-depth cooperative relationships for decades, achieving remarkable results through mutual benefit. The Mercedes-Benz Group stated recently that the automotive industry has always been an important area for deepening cooperation between China and Germany. Today, China has become one of the most important automobile markets in the world. For Mercedes-Benz, we are grateful for such market opportunities that enable us to pursue ongoing industrial collaborations and contribute to the development of the industry; we will continue to increase our investment in China. Zipser, Chairman of the BMW Group, said that innovation and trade are the pillars of economic development. China and Germany possess great potential in strengthening bilateral relations and promoting practical cooperation. I believe this partnership will be further consolidated, developed, and deepened, and I look forward to more opportunities for cooperation in the future. As a representative of Chinese automobile companies, Li Shufu said that Geely Holding Group is a participant and beneficiary in the economic development of both countries; it has deeply integrated the automobile industry chains and supply chains of these two nations, and established a Lotus Technology Innovation Center in Germany in 2018. In 2019, a joint venture for premium mobility services was established in China with the Mercedes-Benz Group, giving rise to the premium mobility brand \"Yaoxing Chu”. This brand is now available in 22 cities across the country, with over one million users ； In 2020, a global joint venture for Smart was established in partnership with Mercedes; its first all-electric SUV, the ForTwo #1, was launched in June 2022, and there is also active demand from customers in Europe. Today, automobile companies from the two countries also share a considerable degree of consensus on carbon emission reduction. “I fully agree with Germany’s views on technology companies and automobile manufacturers; the large-scale production of green liquid fuels through the recycling of carbon dioxide is also one of the effective technical approaches to achieving carbon neutrality. Therefore, I believe there is ample room and great potential for exchanges and cooperation between enterprises in China and Germany. ”Li Shufu said that internal combustion engine technology still has considerable room for growth and development. Geely Holding Group will pursue its strategy for developing new energy vehicles, including research and development in areas such as pure electric vehicles, hybrid vehicles, hydrogen-powered vehicles, and vehicles that make use of methanol in their operations. It is said that among existing energy sources, methanol is a clean oxygen-containing liquid fuel that is easy to store and transport, abundant in supply, and has a wide range of applications; it is globally recognized as an essential pathway toward carbon neutrality. Geely was the first automobile company in China to carry out research and development on methanol-powered vehicles and to bring them into commercial production. From a strategic and long-term perspective, it regarded the development of methanol fuel vehicles as a very important strategic direction. Having focused on this area for 17 years, it has obtained over 250 patents, developed more than 20 models powered by methanol fuel, and accumulated a driving distance of nearly 10 billion kilometers – making it the world’s first automaker to achieve mass production of methanol-powered vehicles. Geely’s project for producing green and low-carbon methanol from carbon dioxide, invested in Anyang, Henan, is set to go into operation. This project utilizes the by-product hydrogen gas from coke ovens, along with carbon dioxide captured from industrial exhaust gases, to synthesize green and low-carbon methanol. It is possible to produce 110,000 tons of green and low-carbon methanol per year, which can directly result in a reduction of 160,000 tons of carbon dioxide emissions. This approach offers significant social and economic benefits, and it plays an important role in reducing carbon emissions and achieving carbon neutrality. Li Shufu also said that aside from new energy vehicle technologies, internal combustion engine technologies still have considerable room for survival and development in terms of carbon reduction. In 2020, the Mercedes-Benz Group and Geely Holding Group collaborated on an efficient power system for use in next-generation hybrid vehicles, aiming to jointly develop hybrid system solutions in order to achieve economies of scale and enhance competitiveness in global markets. Both Geely and Mercedes-Benz consider high-efficiency powertrain technologies to be one of the key elements in the current transformation of the automotive industry; technologies in this field will accelerate the shift toward zero-emission transportation. The two parties will utilize their global R&D networks to jointly develop the next generation of gasoline engines for hybrid technology. The engine will be produced at the engine factories of the partners in Europe and China, and it may be adopted by Mercedes-Benz and its existing partners in China, as well as by the brands under Geely Holding, including Volvo Cars. Li Shufu said that the automotive industry must be an open, global industry, and Geely’s ambition to integrate into the world remains strong. Geely is willing to work with its German partners, on the basis of mutual respect and without affecting each other’s independence, to explore mutually beneficial business projects in compliance with laws and regulations, and to make every effort to promote the successful development of enterprises from both countries.