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- Government control over algorithms
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The Smart car brand has already undergone several reincarnations. But never before has the small car from Mercedes been revamped so radically: The new Smart #1, which was created under the auspices of Chinese car-magnate Geely and major Daimler shareholder Li Shufu, has little in common with the original model. The all-electric mini SUV is bigger, heavier and more digital.
What is truly special, however, is that the car does not want to be either a Chinese or a European product. Mercedes provides the brand, the design and the distribution, the rest comes from Geely. It is the first time that a European manufacturer produces in China for the European market and, in return, hands over considerable parts of research, development and production, writes Christian Domke-Seidel. A concept that will set a precedent?
China’s new rules for regulating algorithms could also set a precedent. The People’s Republic is the first country to allow its citizens to disable certain algorithms in their apps on their own initiative. Big tech platforms like Tencent and Facebook have built their business model on recommendation algorithms that keep users hooked with customized offers. Officials say that this reform of the manipulative system should bring more transparency and self-determination.
But freedom and self-determination remain tightly constrained on China’s Internet, writes Frank Sieren. After all, the regulation also allows Chinese authorities to restrict content recommendations that “influence public opinion” or “mobilize” people. As long as the Party is in charge, the net will remain patriotic.
Fabian Peltsch
Feature
Geely saves Smart
Mercedes has often turned its Smart brand inside out. Even before its initial launch, the company scrapped plans to make it an electric car. At the time, this drove away ex-partner Nicolas Hayek, the inventor of the Swatch watch brand. Then followed a rescue attempt through cooperation with Nissan. And even the revival of the Smart car with the French did not lead to success. Subsequently, Mercedes sold 50 percent of the brand to Geely. And no wonder: Geely’s founder Li Shufu is the second-largest Mercedes shareholder.
With this strategy change, however, Mercedes not only turns the brand upside down, it also transforms certainties of the global car market in the process. For the first time, a European manufacturer produces in China for the European market, outsources considerable parts of R&D and production, and then imports the vehicles to Europe. The fruit of this liaison is the Smart #1, an electric SUV that clearly shows that Mercedes is serious about rebooting the vehicle.
Apart from the brand name, everything has changed. From a visual perspective alone, the car now looks more like a Mini Countryman. And on the technical side, too, the vehicle is completely unrecognizable. And Mercedes has practically revolutionized even the strategy behind the vehicle this time around. A feat that would have been almost unthinkable without a Chinese partner. The two companies have invested €355 million each in the joint project (China.Table reported).
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