China's Brilliance Auto and Geely Holding Group, both known for their independent-branded vehicles, both seem to be getting closer to Mercedes-Benz, which greatly interests industry insiders.

If everything goes well, Brilliance Auto, chairman of Brilliance China Automotive Holdings will sign agreements in Shanghai, east China this March with two refitting companies licensed by Mercedes-Benz.

After the tie-up with the two refitting companies separately based in Austria and Finland, the Chinese auto conglomerate will share the chassis of Mercedes-Benz vehicles in the production of special vehicles. Notably, on February 25, Geely, the potential buyer of Volvo, announced the overall acquisition of Zhejiang Zhongyu Automobile, marching into the domestic special vehicle market.

Remarkably, the target company is engaged in the R&D, production, and marketing of high- and medium-grade business and special vehicles. It has been one of Mercedes-Benz's largest strategic partners in Asia. Now, the company has owned several top-ranking business vehicles, such as those refitted models based on the Mercedes-Benz Vito, the Sprinter and the James Cook. It has gained a footing in diversified markets with its quality products.

Through the deal, Geely is expected to obtain the intellectual property rights in the R&D of special vehicles and business vehicles as well as the sales network from the target company. Zhongyu Automobile has extended its sales and after-sales service network to east, south, north, central, and northeast China. The acquisition is believed to give a leg up to the buyer on its way towards a high-end image.

Geely, headquartered in Hangzhou, Zhejiang Province, east China, will release 21 models in 2010, so that it can reach its yearly sales goal of 412,000 vehicles. The vehicles will include two- and three-compartment versions of brand-new Geely economy sedans, with internal codes of CE-1 and CE-2. They will also contain the right-drive versions coded CE-1R and CE-2R.

The latter two will have shapes that are to be designed by an Italian company and will be developed strictly in accordance with European standards. Once the mass production kicks off, they will be exported directly to developed countries. In its production base in Jinan, capital of the northern Chinese province of Shandong, the Chinese automaker will start the production of its first C class sedan GC-1, namely the EC8 showed at the Shanghai auto show.

Besides, it will bring the cross version, right-drive version, and 1.5L version of the Geely Panda to the market in 2010, and raise the curtain on the production of new energy vehicles, such as the EV products developed on the Panda platform.