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Daimler and Geely collaborate to develop 'a highly efficient modular engine'

BERLIN — German car maker Daimler said on Tuesday it will cooperate with China's Geely to build next-generation combustion engines for use in hybrid vehicles. Efforts to share development costs come as the growth potential for combustion engines faces the twin threat of the COVID-19 crisis and stricter fuel-efficiency and emission rules. "The companies plan to develop a highly efficient modular engine," a spokesman for Daimler said, adding that it would be used in hybrid drivetrains and manufactured in Europe and China. Geely declined to comment. The modular engine will be used in cars under different marques at Geely and Daimler, a person familiar with the matter said on condition of anonymity as the companies are still in the early stages of developing the engine. News of the alliance was a surprise to Daimler's works council at its factory in Untertuerkheim, which specializes in electric and gasoline powertrain assembly. "We are speechless. There was not even a discussion about potential alternative manufacturing locations," said Michael Haeberle, the works council chief for Untertuerkheim. "We have the ability to build four-cylinder engines in Untertuerkheim, but there were no talks about it." Daimler said German factories will be retooled gradually to add electric drivetrains production. Most of the next-generation combustion engines will be made in China, business daily Handelsblatt reported. The alliance with Geely, which owns a 9.69% stake in Stuttgart-based Daimler, means that parts of Daimler's existing partnership with Renault could be pared back. A Renault source told Reuters that the Daimler-Geely project does not mean an end of cooperation between Daimler and Renault. Citing Daimler sources, Handelsblatt said the Daimler-Geely pact would save the German carmaker a "triple-digit million sum" — implying an amount above 100 million euros ($119 million) and less than 1 billion euros. Green Mercedes-Benz Volvo Hybrid Daimler Geely

Mercedes-Benz USA considering moving south

Mercedes-Benz may be a German automaker first and foremost, but it's a global operation. Among its many offices around the world, the company employs some 800 staffers at its US headquarters in New Jersey. But that office could be moving down South in the near future. According to reports in the Atlanta Business Chronicle, the Wall Street Journal and Automotive News, Mercedes is looking into relocating its American head office from Montvale, NJ, where it's been based since 1972, to one of several locations under consideration below the Mason-Dixon line. Among the front-runners is Atlanta, where Porsche bases its North American operations. The presence of a trained workforce, necessary infrastructure, compliant officials and proximity to a major hub for international air traffic could make the Georgian metropolis an attractive proposition for Mercedes. Several locations in North Carolina are also said to be under consideration, as well. Either way, MBUSA's relocation to the South would put it closer to its assembly plant in Tuscaloosa, AL, and to the Port of Brunswick near Savannah from which it ships out those vehicles made in Alabama to points overseas. The relocation project is reportedly being handled by commercial real-estate firm JLL Inc, which is helping Toyota handle its relocation from southern California and Ohio to Texas. Sources don't expect, however, for New Jersey to let Mercedes go without a fight. The state's Grow NJ Assistance Program could offer MBUSA an attractive incentives package to stay in Montvale. The company previously planned in 1998 to relocate to Pearl River, NY, but ultimately ended up staying in Jersey. News Source: Atlanta Business Chronicle, Wall Street Journal via Automotive News - sub. req. Mercedes-Benz north carolina mbusa

2015 Bahrain F1 Grand Prix puts a dark horse in the desert [spoilers]

Ferrari's Kimi Raikkonen had said after Malaysia that Ferrari can challenge Mercedes-AMG Petronas purely on pace, beyond the scope of tire wear, in the dry. We didn't see that in China, where Lewis Hamilton easily kept everyone behind and Ferrari's Sebastian Vettel only got close to Mercedes' Nico Rosberg when Rosberg slowed down to conserve his tires. But the Iceman's words seemed prescient during qualifying for the Bahrain Formula One Grand Prix. At the front, nothing has changed so far this year: four races, four pole positions for Lewis Hamilton. Instead of teammate Rosberg next to him, though, he'll look over to see the scarlet Ferrari of Vettel, who took advantage of Rosberg's cautiousness to snatch second place on the grid. In Q2, Rosberg tried to conserve the tires he'd start the race on and said he couldn't get into a groove in Q3, putting in a time 0.147 seconds slower than Vettel. The second Silver Arrows will share his row with the second Ferrari, Raikkonen – yet again – saying he might have left some time on the table during his hot lap but getting around just one tenth off Rosberg's time. Williams is established as the best of the rest behind two teams this year instead of just one last year, Valtteri Bottas claiming fifth ahead of Felipe Massa. Daniel Ricciardo of Infiniti Red Bull Racing said he wants to fight with the Williams', he'll be helped with a good start off the line for the first time this year. Nico Hulkenberg got Force India into Q3 for the first time since the Italian Grand Prix last year and into eighth on the grid, ahead of Carlos Sainz in the Toro Rosso and Romain Grosjean putting in another excellent day's work for Lotus. Come race time, it turned into Mercedes power against Ferrari strategy. When Sky F1 commentator Martin Brundle talks about the Mercedes-AMG Petronas team he often mentions how their engine advantage leads to other advantages throughout the car. Not having to use aerodynamic changes to make up for power unit deficiencies, for instance, means they can run the aero setup they want, which optimizes speed and tire wear throughout a lap. It equates to advantage on top of advantage on top of advantage. That's where Lewis Hamilton is right now, so fundamentally dialed in to his car and his racing that he run the races he wants to run. From the front spot, the Brit ripped off another perfect start and led the field into Turn 1, relinquishing the lead only during pit stops.