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Daimler rebuffs Geely offer to buy stake

HONG KONG/BEIJING - Daimler AG has turned down an offer from China's Geely to take a stake of up to 5 percent via a discounted share placement, as the German automaker has long been reluctant to see existing shareholdings diluted, sources with knowledge of the talks said. A stake of that size would be worth $4.5 billion at current market prices. Although Daimler declined the offer, it told Geely it was welcome to buy shares in the open market, the sources added. Carmakers in China have embarked on a flurry of dealmaking, as they scramble to boost production of electric and plug-in hybrid vehicles ahead of tough new quotas to be imposed by Beijing, which wants to reduce urban smog and lower the country's reliance on oil. People with knowledge of Geely's thinking said the company was keen to access Daimler's electric car battery technology and wanted to establish an electric car joint venture in Wuhan, the capital of Hubei province. Geely, which also owns Swedish car maker Volvo, is still hopeful it can secure a deal in some form over the coming weeks, they added. The two automakers met in Beijing in recent weeks at Geely's behest. There, the Chinese firm, formally known as Zhejiang Geely Holding Group, offered to take a stake of between 3 percent and 5 percent if Daimler would issue new shares at a discount, the sources said. It was not immediately clear what kind of discount for the shares Geely had in mind or whether Geely was interested in buying the shares on the open market. A spokesman for Geely declined to comment. A spokesman for Daimler said the company was "very happy with our shareholder structure at present", but added that it would welcome new investors with a long-term interest in the company. Shares in Daimler were up 1 percent in early Wednesday trade, in line with the broader market.DAIMLER ALREADY TIED TO BAIC, BYD Geely, which has a market value of some $32 billion, is the leading domestic brand in China with a 5 percent market share, according to an analysis by Nomura Securities. A stake of 5 percent would establish it as Daimler's third-largest shareholder behind the Kuwait Investment Authority and BlackRock, who hold 6.8 percent and 6 percent respectively, according to Reuters data.

Race Recap: 2015 US Grand Prix was wet, wild, and historic

Hurricane Patricia made landfall in Mexico this weekend, and made her presence known throughout the South. For two of the three days of the grand prix weekend it rained non-stop in Austin, so badly on Saturday that qualifying had to be postponed until Sunday morning, and then it only stayed dry enough to conduct the first two sessions. At the end of a tricky, slippery Q2 Nico Rosberg had put his Mercedes-AMG Petronas on the front row, one tenth ahead of teammate Lewis Hamilton. The German had done the best he could to keep his hair-thin chances of a World Championship fight alive. Daniel Ricciardo lined his Infiniti Red Bull Racing chassis in third ahead of teammate Daniil Kvyat, both drivers having moved up a place because Ferrari driver Sebastian Vettel took a ten-spot grid penalty for using a fifth engine and dropped to 13th. Continuing the two-up theme, Sergio Perez and Nico Hulkenberg were fifth and sixth for Force India. After that came variety: Felipe Massa in seventh for Williams, Max Verstappen for Toro Rosso in eighth, Fernando Alonso looking good in the rain for McLaren in ninth, and Romain Grosjean for Lotus in tenth. When the lights went out, Turn 1 set the tone. Pole position is on the outside line at Circuit of the Americas, and Hamilton had got himself far enough under Rosberg by the time the two got up the hill that Rosberg had to stick to the outside through the corner. At the corner exit Hamilton used the entire track, pushing Rosberg wide, their cars touching. As Rosberg left the track and dropped back to fourth, Hamilton radioed to the team to say the contact was unintentional. The two Mercedes' and two Red Bulls animated the front. Rosberg passed Ricciardo at the end of a Virtual Safety Car period employed to let the marshals clean the debris at Turn 1. Kvyat started chasing down Hamilton until the Russian ran wide and let Rosberg and Ricciardo through, then Rosberg ran wide on the next lap to let Ricciardo through. On Lap 15, Ricciardo passed Hamilton through the esses to take the lead. After the first round of pit stops the Aussie still had the lead, followed by Rosberg, Kvyat, Hamilton, and Vettel. Then Rosberg got around to take the lead and Vettel closed in on Hamilton as the Brit duked it out with the Russian. Rosberg showed excellent speed, building up a nine-second gap on Ricciardo, but a Safety Car period erased that when Marcus Ericsson had to park his dead Sauber on the inside of the track after Turn 10.

Mercedes sketches new DTM C-Class

Mercedes-AMG has two racecars on tap for 2016: the AMG GT3 for FIA GT3 sports car racing and the Mercedes-AMG DTM racer in the German Touring Car series. We have our first sketches of the latter, based on the 503-horsepower C63 Coupe, just lower, wider, and meaner. Naturally, a different motor goes in the DTM car, series regulations prohibiting turbocharging and dictating a 4.0-liter, naturally-aspirated V8 with 90-degree vee angle and a maximum of 500 hp. In 2017 the regulations will change to mandate 2.0-liter, four-cylinder turbocharged motors with about 600 hp in a Class One car. The switch will align DTM regs with Japan's Super GT and IMSA here in the US, so they can move between series' with minimal changes. That has the possibility of at least doubling the number of automakers on the grid – the German three and the Japanese three at once – and enabling a World Cup series held in the off-season between 2017 and 2018. Since 2000 Mercedes has won six Driver's Championships in DTM and nine Constructor's Championships, but it hasn't taken home a trophy since 2010. With six races to go in the season it has a team in second place, six points behind the leader. The press release below outlines the new aims. Mercedes-AMG DTM Team present first outlines of 2016 race car - Looking ahead to the 2016 season: How the new DTM car fielded by the Mercedes-AMG DTM Team will look - Ulrich Fritz: "Our aim with this vehicle is, of course, to continue the Mercedes-Benz success story in the DTM." Stuttgart, Aug 29, 2015 - The 2015 DTM season reaches its climax in September. But even before the final race weekends of the year, the Mercedes-AMG DTM Team are providing an insight into what lies ahead for the race series, revealing the first designs of the car that they will enter for the 2016 campaign. The 2016 DTM car to be deployed by the Mercedes-AMG DTM team follows on from successful predecessors that include the most successful car in DTM history – the AMG Mercedes C-Class with which Mercedes-AMG drivers secured 85 victories in 159 races. "The new Mercedes-AMG C 63 Coupe will again set new standards for driving dynamics and design. So, the vehicle provides the ideal basis for our DTM car," said Head of Mercedes-AMG DTM Ulrich Fritz. "I'm already looking forward to seeing the new Mercedes-AMG C 63 DTM compete in 2016.