Yesterday Daimler announced that McLaren would be buying out Daimler’s interest in their joint venture Formula 1 team. Many, including board member Erich Klemm, thought this made all kinds of sense. “In the (car) factories, every cent is being turned over three times. The employees are feeling the financial crisis with shorter working hours and loss of income,” he continued. “In these economically difficult times, the company should invest in better marketing of its real cars.” My, what a novel idea!

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To paraphrase Kurt Vonnegut, the Maybach experiment was a conspiracy between Daimler and the rich to make the rest of us feel smart. The ultimate zombie brand, exhumed during the go-go nineties as a way for Daimler to charge even more for a stretched S Class, has now fallen on troubled times. And now, according to the ever-trusty limobroker.co.uk, none other than Mariah Carey has put the Maybach seemingly irrevocably in its place:

Initially a top class Mercedes complete with a chauffeur was sent to take Mariah to the studios, but this wasn’t deemed exclusive enough for a star of Mariah’s stature and was then replaced by a £250,000 Mercedes Maybach. However the Maybach limo was also rejected and then, third-time-lucky, a Rolls Royce Phantom was dispatched.

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Reuters reports that Aabar Investments is considering increasing their stake in Daimler AG from 9.1% to 15%. Aabar is already Daimler largest shareholder and this move, should it happen, will further cement this position. The Abu Dhabi investment fund paid $2.7 billion for the 9.1% stake when the share price €20.77. Since then, the share price of Daimler has rocketed 77% and on the news of Aabar mulling a bigger stake, the share price rose by 4.4% to €35.81 per share. Daniel Schwarz, an analyst with Commerzbank AG said “It’s a positive signal that a large shareholder is showing a long term commitment”. But the strength of the fund’s love for Daimler doesn’t just extend to this increased stake.

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The “Two-Mode” hybrid system jointly developed by GM, Chrysler, Daimler and BMW is turning out to be quite the albatross. Chrysler’s Two-mode Durango and Aspen were discontinued before Bob Nardelli had the chance to drive one to last year’s bailout hearings. GM’s hybrid Escalade has been dead in the water, and BMW and Mercedes have said that only their X5 and ML SUVs will receive the expensive, overly-complicated drivetrain. Now Mercedes is signaling even further ambivalence toward the technological dead-end by announcing [via Autoblog] that the ML450 Hybrid will be a lease-only option. The 21/24 MPG ML Hybrid will be available at $659 per month for 36 or $549 per month for 60 months. Since this is the only vehicle M-B will sell with the two-mode technology, the limited number of batteries needed was a major factor in driving the cost up. “We are offering this vehicle as lease only due to a limited supply of batteries available. We felt a lease only program offered the best option for customers,” say Mercedes spokesfolks. The real message: the billion-dollar Two-Mode development program has been a colossal waste.

As reported here, Daimler AG plans to increase its sourcing of automotive components from China nearly eight-fold within four years. The luxury car maker will buy $3.25b worth of car components per year in China. Now, BMW is itching to get in on the act. Not that BMW is new to buying parts in China, they have done that for years, mostly unbeknown to their well-heeled customers. BMW and Daimler are in talks to create a huge buying co-op. They want to create critical mass, and drop the bomb on their Chinese suppliers, the German Handelsblatt reports. By concentrating their buying power, Beemer and Benz intend to save €350m per year, in discounts alone. To assuage their American clientele, they say that they will also extend the stingy hand of their allied purchasing departments to parts suppliers in the U.S.A. However, with the dollar high and U.S. parts manufactures dead, or on the brink of extinction, the BMW/Mercedes buying axis is squarely targeted at China.  The “deeper discounts” news from Deutschland already has Chinese parts makers atwitter and alarmed. Here is why ….

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