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German automakers adopt Chinese technology to boost competitiveness
European automakers are increasingly integrating Chinese technology and supply chain strategies to remain competitive. Mercedes-Benz plans to invest an additional $75 million in the Chinese company Momenta, which specializes in advanced driver-assistance systems. This technology is expected to be featured in at least four models launched in China between 2025 and 2027, with the company considering its use in other global markets.
Similarly, BMW is shifting its procurement strategy to focus on “industry best offer” components. By 2032, the company aims to have the majority of its annual purchasing budget dedicated to standardized, high-quality components rather than custom-developed parts. This move is intended to optimize costs and leverage existing market solutions.
Meanwhile, Chinese manufacturers like Chery continue to showcase high-tech, high-power capabilities. The Jetour G700, a plug-in hybrid SUV utilizing CATL batteries, exemplifies this trend with a combined 904 CV and significant electric range, highlighting a technological gap between Chinese production and current European efficiency-focused models.
Entities
BMW · Chery · Mercedes-Benz