(Yicai) Dec. 29 -- Ecarx Holding’s shares leaped after the Chinese auto technology supplier co-founded by Geely Holding Group’s Li Shufu said it has set up a joint venture for intelligent vehicle products with Smart Automobile, the German operator of the Smart electric auto brand.

Ecarx [NASDAQ: ECX] closed 11.2 percent higher at USD2.89 a share in New York yesterday, after earlier soaring by as much as 13 percent.

“Ecarx and Smart will work together to drive technological advances, expand the research and development ecosystem through talent exchanges and joint innovation, and accelerate their global expansion efforts,” the Hangzhou-based firm announced yesterday. 

Smart Auto, a JV formed by Geely and Mercedes-Benz in 2019, will own 51 percent of Smart Zhejiang Software Technology, according to corporate data platform Tianyancha. Ecarx will hold the rest.

Ecarx and Smart previously collaborated on the Smart #1 and Smart #3 sport utility vehicles and jointly developed the SmartOS for the two models, a highly acclaimed operating system with a unique human-machine interface, the Chinese firm noted.

“Smart Software Technology marks the next step in a deepening relationship, which will leverage each company's respective brand resources and product development capabilities to build upon SmartOS by expanding the research and development ecosystem, streamlining procurement and supply chain processes, and integrating teams of highly-skilled technical talent to drive vehicle development,” Ecarx said.

The pair plans to integrate the high-performance Ecarx Makalu computing platform into Smart series models to improve customer satisfaction, enhance brand loyalty, and expedite Makalu's deployment, Ecarx said.

They will also explore new possibilities for immersive cockpit experiences in areas including triple-A games, artificial intelligence, brand intellectual property incubation, and ecosystem development, it added.

“The era of software-defined cars has arrived, and Smart considers its 'future tech' orientation as a core brand value,” said Tong Xiangbei, chief executive officer of Smart Auto. 

“By partnering with Ecarx to establish a JV, we will build an outstanding team of talent, integrate shared resources, invest in innovative research and development, and jointly empower smart to continue leading in the field of intelligent technology and in bringing high quality, new-premium intelligent mobility experiences to users,” he said.

Ecarx and Smart will continue to create intelligent experiences by expanding their talent exchanges, R&D efforts, and supply chain network through Smart Zhejiang Software Technology, said Shen Ziyu, co-founder, chairman, and CEO of Ecarx.  

Set up in 2017 by Li and Shen, an expert in Internet of Vehicles technology, Ecarx develops hardware and software solutions essential for the development of connected, automated, and electrified mobility, including infotainment head units, digital cockpits, vehicle chip-set solutions, a core operating system, and integrated software stack, according to its website.

Ecarx went public via a blank-cheque firm last year, raising an estimated USD368 million after expenses and valuing the company at USD3.82 billion. It employs more than 2,000 people. 

Editor: Martin Kadiev