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Geely and Mercedes-Benz invest $780 million to make electric Smart cars

BEIJING/SHANGHAI — Zhejiang Geely and Mercedes-Benz on Wednesday said they would each invest $388.77 million (2.7 billion yuan) in a China-based venture to build "premium and intelligent electrified" vehicles under the Smart brand. The 50:50 venture has received regulatory approval and will be based in the Chinese coastal city of Ningbo, the Chinese and German automakers said in a statement. Like Mercedes-Benz, smart is a Daimler marque. The venture will have manufacturing capacity in China and sales operations in China and Germany, the automakers said. Geely will lead in engineering the cars while Mercedes-Benz will take charge of their overall look, they said. The partners will each have three executives on the board of directors, with Geely's Tong Xiangbei becoming the venture's global chief executive. Geely has expanded rapidly through mergers and acquisitions since buying Sweden's Volvo in 2010 from U.S. parent Ford. In 2018, it built a stake of almost 9.7% in Daimler and set up a ride-hailing venture in China with the Stuttgart-based carmaker. Its latest announcement comes just over a month after China's Great Wall and Germany's BMW formed a venture to build electric Mini-branded cars in China, the world's biggest market for electrified vehicles where demand for smaller EVs is on the rise. Related Video:

2016 Mercedes-Benz GLC one-ups old GLK in every way

Meet the Mercedes-Benz GLC-Class, the latest in the automaker's increasingly impressive run of new or significantly updated (and occasionally renamed) vehicles that's included the immensely good C- and S-Class, and the upcoming GLE-Class – formerly known as the M-Class crossover. Unlike the GLE, which you'll be reading our First Drive on shortly, the GLC is much more than a mid-cycle refresh, representing the second-generation of Mercedes' compact crossover. While it represents a more significant update to the former GLK than the GLE does to the ML, the new GLC shares its looks with the larger vehicle. It's a handsome take on Mercedes' latest design language, featuring a similar rectangular, two-slat grille in the fascia. The greenhouse has hints of C- and S-Class in it, and is the best way of viewing the 4.6-inch stretch to the wheelbase. The taillights, meanwhile, take their inspiration from the S-Class Coupe and AMG GT. The new cabin isn't just prettier, it's more spacious, too. The C-Class and S-Class also serve as inspiration for what is a remarkably attractive cabin. While Audi has long served as the standard for interior design, with the C, S, and now the GLC, Mercedes can stake a claim to Ingolstadt's crown. Like the C-Class, the center stack is a wide, curving design that terminates in the controller for the infotainment system, while a tablet-like display sits up high. Leather, wood, and aluminum cover most every surface we can see in the initial batch of photos, while cool, blue accent lighting adds an extra dose of style. The new cabin isn't just prettier, it's more spacious, too. Thanks to the longer wheelbase, there's an extra 2.2 inches of space for second-row passengers. There's more room for cargo, too. Mercedes claims 20.5 cubic feet – non-SAE, it should be noted – behind the second row, up from 16.5 in the current GLK. While the GLC will be offered with a range of gas and diesel powertrains, US consumers will be offered the GLC300 first. Counterintuitively and like the C300, the entry level CUV uses a 2.0-liter, turbocharged four-cylinder engine with 241 horsepower and 273 pound-feet of torque. While we expect 4Matic to be the popular option, Mercedes will also offer a rear-drive-only model. There's no mention of additional powertrains beyond the launch model, although we'd expect the GLC to follow the C-Class' example and add a GLC400 powered by a 3.0-liter, twin-turbocharged V6.

US buyers show little interest in big hybrids

The idea of producing large, luxury-vehicle hybrids is turning into a "what were they thinking?" exercise in futility, USA Today reports. General Motors is discontinuing hybrid versions of the Cadillac Escalade, Chevrolet Tahoe and GMC Yukon SUVs, while Mercedes-Benz and Toyota's Lexus division are doing the same with their S-Class hybrid and LS hybrid sedans, respectively. The culprit? Big price increases for fuel economy improvements that border on the unimpressive. Granted, the Escalade hybrid gets 31 percent better fuel economy than the standard version, but that still maps out to a combined fuel-efficiency rating of just 21 miles per gallon. That can be seen as a worthwhile increase, if it didn't cost over $8,000 extra. The 2014 Escalade Hybrid, for example, starts at $74,425 while the non-hybrid can be had for $66,295. Meanwhile, the Lexus full-size hybrid costs $6,000 more than the regular version but only gets 1-2 mpg better combined fuel economy. The result of all these high costs? Low sales. Through April, GM sold 82 of its hybrid SUVs and pickups, down from 541 a year earlier. And the LS hybrid sales were in single-digit territory for April. That isn't stopping Lexus from promoting its hybrids as the right solution (with the wrong facts), though. There are still automakers giving big hybrid vehicles a shot, though. Nissan's Infiniti division is selling a hybrid version of its QX60 and says an impressive 10 percent of QX60 buyers choose the hybrid, which costs just $3,000 more. Looks like money talks. Featured Gallery 2015 Cadillac Escalade: First Drive View 35 Photos News Source: USA TodayImage Credit: Copyright 2014 Brandon Turkus / AOL Green Infiniti Lexus Mercedes-Benz Hybrid lexus ls gmc yukon mercedes-benz s-class infiniti qx60 chevrolet tahoe