Mercedes Benz 560 Sel Stretched Limousine on 2040-cars

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Mercedes making aggressive plans for Chinese market

Mercedes-Benz is preparing a major product offensive to counteract lagging sales in the Chinese market, aiming 20 new or updated models at the People's Republic in the next two years, according to a report by Reuters. The plan is part of MB's so-called 2020 Initiative, which will see the Stuttgart-based manufacturer dump 2 billion Euros ($2.67 billion) into its Chinese market vehicles in a bid to boost sales to 300,000 units by 2015.
Were it to succeed, China would become the largest market for the Silver Arrow, outpacing Germany and the United States. Leading the charge will be the redesigned E-Class, which is set to launch in China this week. That will quickly be followed by the S-Class, and eventually by the GLA-Class in 2014.
Mercedes has struggled in China, especially relative to its German competition, BMW and Audi. Where Mercedes saw a mere four-percent increase in 2012 sales to 206,150 units, Audi was up a staggering 32 percent, while BMW's numbers jumped 41 percent. While some voices, according to Reuters, accuse Munich and Ingolstadt of boosting their numbers through hefty incentives, the fact remains that Mercedes was just walloped by its competitors last year.

Mercedes dropping Shooting Brake from next CLS-Class

If you've been admiring the Mercedes CLS Shooting Brake from afar and held out hope that the next version might make it to over to our side of the pond, we've got bad news for you. Not only will the next rendition of Benz's sleek wagon not make it to North American showrooms, it won't be offered anywhere. According to Car, the German automaker has pulled the plug on the next CLS Shooting Brake. The five-door bodystyle was slated to form part of the third-generation CLS-Class lineup, whose design has already been finalized. But though there was reportedly great enthusiasm for the shooting brake within the company, lukewarm response from the vital North American and Chinese markets meant that plans for another wagon variant were scrapped altogether. Mercedes first rolled out the CLS four-door coupe in 2004, pioneering the popular new segment before BMW followed with its Gran Coupe models and Audi its Sportbacks. The second-generation model arrived in 2010, with a Shooting Brake following in 2012. Stuttgart even followed up with a smaller CLA Shooting Brake as well. With the third-generation model now on its way, however, the CLS is going back exclusively to four doors and a trunk. Of course that doesn't mean Mercedes won't be offering any oddball long-roofed models. It simply appears to be filling those niches with slant-backed versions of crossovers like the new GLC and GLE instead. So if you're looking for a vehicle with a Silver Star on the nose and an unconventional roofline at the back, you're going to have to settle on riding higher. Related Video:

Automakers face reality of EVs' cost — to jobs, and their bottom line

Related: We obsessively covered the Frankfurt Motor Show — here's our complete coverage FRANKFURT, Germany — European car bosses gathering for the Frankfurt auto show are beginning to address the realities of mass vehicle electrification, and its consequences for jobs and profit, their minds focused by government pledges to outlaw the combustion engine. As the latest such announcement by China added momentum to a push for zero-emissions motoring, Daimler, Volkswagen and PSA Group gave details about their electric programs that could give policymakers some pause. Planned electric Mercedes models will initially be just half as profitable as conventional alternatives, Daimler warned — forcing the group to find savings by outsourcing more component manufacturing, which may in turn threaten German jobs. "In-house production is almost irrelevant to the consumer," Daimler boss Dieter Zetsche told reporters on the eve of the Frankfurt Motor Show, in the midst of a German election campaign in which automotive jobs have loomed large. The company set a target of saving 4 billion euros ($4.8 billion) by 2025 to help fund the cost of its electric cars. "Daimler is the first company to state explicitly how much electric vehicles are going to hurt margins," said Bernstein analyst Max Warburton. "It was brave to go first — but of course it won't be the last." Volkswagen, for its part, said it was seeking new global supplier contracts to source 50 billion euros ($60 billion) of electric car content including batteries, which are not yet manufactured competitively in Europe. "A company like Volkswagen must lead, not follow," Chief Executive Matthias Mueller told reporters. VW diesel emissions-cheating exposed by U.S. regulators in 2015 triggered global public outrage, dozens more investigations into test-rigging by the wider industry and a push by some lawmakers to ban diesel and eventually all engines. TIGHTENING NOOSE Tesla shares jumped nearly 6 percent on Monday after a Chinese minister said it was a question of when, not if, Beijing bans fossil-fuel cars, tightening the noose around the combustion engine. France and Britain have promised its outright abolition by 2040. But PSA, the maker of Peugeots and Citroens, said it was concerned about the risks if consumers were left behind in the rush, and a new generation of battery cars does not sell.