Who doesn’t like a proper wacky duel? Like the one where James May raced a Ferrari against a camel, or when the guys from TopGear did a “train vs Aston Martin” from London to Cannes?
As in the case of the proverbial hare and tortoise, when you set two unlikely opponents against each other, you get some entertaining results — and you might even prove a point. That’s what Germany’s AutoBild (print edition, March 5) tried to do when it tested the assumption that power = speed.
Dow Jones [via Easybourse.com] has a hot release that is sure to be burning up the wires: Daimler and Chinese EV firm BYD have signed a deal to develop an electric vehicle “specific to the requirements of the Chinese market.” The new EV will be sold under a new, jointly-run brand and will be developed at a new Chinese technology center to be built as part of the joint venture. According to the release, “the companies’ understanding also includes further discussions on additional business opportunities of mutual interests,” all of which raises some interesting questions. Like why Volkswagen was caught napping: the Wolfsburg boys reportedly signed a MOU with BYD last March, but somehow Daimler has beaten them to the punch… on the very same day that VW announced that it wants to be the electric-mobility market leader by 2018, no less. Another open question: why develop a EV for the Chinese market, when that market’s tolerance for EV premiums appears to be fairly low? After all, with Daimler providing the car expertise, BYD might have a chance at the US and European markets where EV demand is actually proven. Also, how screwed is Tesla at this point? Though these questions remain very much unanswered, BYD is certainly making progress towards becoming a major car biz player, despite the many criticisms that have been leveled against it.
This is a short story of how we sometimes arrive at the truth. Letting go of deep-seated childhood emotional responses is hard. Growing up in the fifties in Austria, Mercedes was my true God. My father had a friend with a 300 SL Gullwing, and I spent hours walking around it, absorbing each detail. There was an old Tatra streamliner in the neighborhood. Aerodynamics, efficiency, and speed are my triggers. In 1985, I bought one of the first W124 300E sedans in LA, in part because its Cd. of .28 was the best in the world then, as well as its 140 mph top speed. Just yesterday, in Part 3 of the History of Automotive Aerodynamics, I concluded the survey of current production car aerodynamics record-holders with the 2010 Mercedes E-Class coupe, honoring its widely disseminated Cd of .24, lower than even the 2010 Prius. Looking at the picture of that E Class coupe this morning triggered a totally unexpected upsurge of that old lust, something that I thought was long extinguished, and I actually went to the Mercedes web site for strictly personal reasons. I expected that Mercedes would be trumpeting the coupe’s .24 Cd proudly. Not so, and for a good reason. (Read More…)
Reuters reports that Daimler are so smitten with Dieter Zetsche, they’ve extended his contract until 2013. By then, Zetsche will be 60 years old, and will have worked for Daimler for 37 years. “Promote the insiders” was the cry in Daimler’s headquarters, as Thomas Weber, a board member responsible for group research, also received a contract extension to 2013. In the excitement, Wolfgang Bernhard was elected to a newly-created seat on Daimler’s board of directors as well. But these votes of confidence shouldn’t be taken for granted. Daimler have some big challenges in front of them, chief of which is a lack of scale and cost competitiveness in the compact segment. Herr Zetsche did start talks with Renault, but nothing has come to fruition yet. Another big problem, particularly in the ego division, is that Daimler are falling behind BMW (and, gasp, even Audi) globally and in emerging markets like China and India. It seems that if Dieter Zetsche wants to retire at 60, he’s going to have to earn it.
An AMG-tuned S Class Coupe prototype (note that the CL moniker has been dropped) gets stuck in a drift while testing in the icy north. Auto Motor und Sport reports that it took the combined efforts of an ML prototype and an S Class prototype to pull the beast from its icy resting place. Sportisch!
VW and Audi combined for a hell of a month, with combined sales up 40 percent. The Beetle is back, kind of, but the Jettas still butter the bread at VWOA. At Audi, the A4/A5/Q5 combo combined for two thirds of the brand’s 6,510 January sales. Subaru‘s Impreza and Forester are a down a bit from their big 2009 numbers, but the new Legacy/Outback duo were up over 100 percent. Mercedes had a strong January across the board, with only the tired SLK, CLK, CL and CLS failing to grow sales. Also, 156 people bought an R-Class this month.
German Mercedes tuner Carlsson has announced a 25-unit, limited-edition C25 coupe based on the Mercedes CL and the ancient nightmares of dread Cthulu. Sure, it has a 735 hp turbocharged V12, but that isn’t why people will buy it. The real ownership pitch: Carlsson will only sell one per country, thereby “guaranteeing exclusivity” for its buyers. Which begs the question: would Carlsson have sold that many C25s on their own merits? We think not.
Mercedes sold only 2,825 R Class “Grand Sport Tourer” models in the US last year, confirming once and for all that the eigenwillig CUV is a bonafide flop in this country. So much so that a GL-inspired restyling is already under development, possibly with a GL-inspired name as well: GLR.
Consumer Reports may have discovered why owners of clean diesel cars might feel a bit suicidal from time to time. They recently took a long-term tester Mercedes GL320 BlueTec clean diesel into the shop to have its urea-based AdBlue exhaust-scrubbing fluid refilled, and the results were… eye opening.
The total bill just for adding AdBlue? A stunning $316.99. We were down to 18% full on the additive at 16,566 miles. It took 7.5 gallons to fill the tank, costing an eye-opening $241.50 for the fluid alone. The labor to add the fluid plus tax accounted for the rest. None of this was covered by the warranty… At the current rate and cost of consumption, just the AdBlue itself (without the labor, which would probably be included as part of the routine service) would cost $1,457.80 for 100,000 miles of driving. That’s a lot of money, knocking about a third off of your fuel savings vs. buying a GL450 V8.
And you thought gas was expensive! From what we’ve been able to dig up, the $32/gallon price is a fairly typical price at Mercedes dealers. Are there any Mercedes or Audi clean diesel drivers in the house who can confirm?
If you hear a loud screeching noise coming from the Stuttgart area, that’ll probably be Dieter Zetsche berating his Asian management team. The Economic Times of India reported that the Mercedes-Benz marque has lost its leadership of the luxury car segment in India to BMW after nearly ten years on top. Daimler also posted a 10.43% decline in sales in India, as volume fell to 3,247 units (if that doesn’t seem like much, consider that Mercedes also trails BMW in China by about 60k units to about 90k). And just like that, out come the excuses: “We are behind BMW in 2009 because of limited availability of our E-Class car … I don’t want to focus on leadership. We want to have a profitable growth,” Mercedes Benz India Managing Director and CEO Wilfried Aulbur told reporters. “We see a very strong growth in 2009 and it will be a blockbuster year for us. We are very bullish and we expect, it will be a high double-digit growth.”
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Having a hard time understanding the stream of inexplicable niche products coming out of the German automakers recently? Mercedes isn’t about to make things any easier. According to the latest print edition of Auto Motor und Sport, Mercedes has fallen so far down the segment-busting rabbit hole, it’s planning a “Shooting Brake” wagon version of its already-confusing four-door coupe, the CLS. Intended, of course, to compete with the BMW 5GT and Audi A7. Look for a concept inspired by this 2008 ConceptFascination study to debut at this fall’s Paris Auto Show. Then expect Audi and BMW’s designers to drop even more acid and talk their bosses into producing a landaulet-roofed, seven-door, MPV-coupe. You know, just to see if Mercedes makes one too.
Automotive News China [sub] reports that Mercedes believes its Chinese-built cars are every bit as good as its German-built models. Ulrich Walker, Chairman and CEO of Daimler Northeast Asia says:
Yes, our cars here are exportable. There is no difference in quality with those made outside China.
But, as Bertel Schmitt reports, demand for luxury cars is strong enough in China that we won’t be seeing “Beijing, China” as the point of assembly on US-market Mercs.
It’s a strange world. Europeans are changing their already small cars for tiny ones. Manufacturers fall over themselves building ever smaller and cheaper cars. In the USA, small cars are suddenly big. Ford’s analyst George Pipas says that this year, small cars accounted for 21 percent of all U.S. vehicle sales. By 2013, Pipas predicts that compact cars, subcompact cars and crossover vehicles built off small car platforms will account for 36 percent of total new vehicle sales in the United States. Car executives that still have a job bemoan the times where big cars meant big profits.
A new frugality is rampant on the globe. Makers of luxo-barges, such as BMW and Mercedes are in big doo-doo.
(Read More…)
After writing about Spyker transferring production from the Netherlands to the United Kingdom, I thought I’d seen it all. Well, now I have. Production going OUT of Germany and into the United States. After much debating, Daimler have finally decided to switch some production from Germany to the United States. According to Reuters, roughly a fifth of Mercedes-Benz C-Class models will be built in Alabama by 2014, in hopes of protecting against currency fluctuations and maintaining profit margin. Naturally, the unions weren’t happy, in fact they downed tools in protest, claiming it was a “blatantly wrong decision.” Dr Z saw it differently, especially considering the move is said to be worth $100m in incentives from the state of Alabama.
Autocar reports that the next-generation of Smart city car is being co-developed by Daimler and Renault. The rear-engined platform is being described as “modular,” with variable wheelbase and track, and will underpin the next Smart ForTwo and ForFour as well as several Renaults. Initially Mercedes will provide three-pot engines with six-speed manual and seven-speed dual-clutch transmissions. Eventually, the two firms will develop a series of 1.8 liter engines to power the ForFour, as well as the new Mercedes A and B classes and future Renault Twingo, Clio, Modus, Mégane and Scenic models. Both firms plan EV and hybrid versions as well, although the firms have not decided which will lead development of these drivetrains… which can’t be a good sign for Tesla which has a Smart electrification contract with Daimler. Equally undecided is whether Nissan will get a version to match up with Toyota’s iQ. In any case, it’s become clear that what began as a unique-platformed, niche brand was going to have to change. By sharing costs, developing a viable four-seater on the same platform and offering advanced drivetrains, Daimler may just be able to pull Smart’s fat from the fire.
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