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Daimler buying 12% stake in Beijing Auto

Daimler and Beijing Automotive are officially going steady, with the German company set to take a 12-percent stake in the Chinese brand tomorrow. The two are already tied up in a Mercedes engine plant in Beijing, of which BAIC will increase its stake in, from 50 to 51 percent. Daimler will also get two seats on the Chinese company's board. BAIC may also gain the ability to produce cars on Mercedes-Benz platforms, according to Automotive News Europe.
The investment in BAIC comes ahead of that company's initial public offering, according to a report form Bloomberg, which indicates the deal will be inked tomorrow in the Chinese capital. According to the report, if the circumstances are right, BAIC may turn around and invest in the Germany company "soon."
It's not entirely clear just how much the 12-percent cut is costing Daimler, although it seems reasonable to assume that, as it's ahead of the IPO, the parent company of Mercedes is getting a bit of a bargain.

Mercedes A-Class refresh includes crown-stealing 381-hp A45 AMG

We're sure the 362-horsepower Audi RS3 Sportback enjoyed its brief reign at the top of the hot-hatch horsepower charts. But now, Mercedes-Benz updated the A-Class so that it reclaims the throne, castle, and jewels: the Mercedes-AMG A45 4Matic comes with 381 hp from its turbocharged 2.0-liter four-cylinder, a significant bump of 36 hp, and 350 pound-feet of torque, an increase of 18 lb-ft. The seven-speed dual-clutch gearbox gets shorter ratios from third to seventh gears, so its 0-62 mile-per-hour time has dropped from 4.6 seconds to 4.2 seconds. The A45 gets a Dynamic Select system – driving modes controlled by a rotary knob – that comes standard with four modes: Comfort, Sport, Sport +, and Individual. Opt for the AMG Dynamic Plus package and you get a mechanical locking differential on the front axle, the two-stage AMG Ride Control sport suspension with adaptive damping, and a Race mode. Outside, additional aero aids are applied to the nipped-and-tucked bodywork changes made to the entire A-Class range. The spoiler lip under the new front bumper, rear roof spoiler, and rear diffuser, create more downforce than before. Inside, the new flat-bottomed steering wheel is joined by sport seats that allow bolster depth adjustment. And for all those upgrades, fuel economy has stayed the same at 6.9 liters per 100 kilometers on the European cycle. Even away from that tectonic shift, Mercedes made plenty of changes to the A-Class landscape. The new front bumper is said to be "more arrow-shaped," in homage to the the Concept A-Class from 2011, that stretches its look horizontally. LED headlights, standard on the A45, are optional here, and are paired with interior ambiance lighting. In back we get new taillights and some angular exhaust finishers laid into a diffuser-like insert, an alteration we're seeing across the entire Mercedes line-up. Inside, you'll find a redesigned instrument cluster with new graphics, higher-quality finishes on the switchgear, seats with adjustable bolster length, and new color options. Four driving modes are incorporated into the Dynamic Select system: Comfort, Sport, Eco, and Individual. The Eco mode has been tweaked to return even more fuel savings. This Mercedes is also the first to incorporate Apple CarPlay and MirrorLink for the non-iOs smartphoners.

Recharge Wrap-up: Daimler spending big for fuel cells, Ford Go!Drive experiment advances

Ford's Go!Drive experiment is entering its beta phase in London. The project, which is one of the automaker's global smart mobility experiments, uses a mobile app for on-demand carsharing of Ford Focus Electric and Ford Fiesta vehicles. The beta phase involves increasing the number of available vehicles from 20 to 50, and collecting new data from users. The program offers one-way rentals and guaranteed parking, with no membership fees and a cost of 26 cents per minute. Ford hopes to get 2,000 drivers involved in the program. Read more at Green Car Congress. Daimler will invest billions of dollars to upgrade the Mercedes-Benz Unterturkheim plant over the next few years. This year alone, it plans to spend $1.06 billion. The company expects cost savings "in the range of hundreds of millions of euros until 2020," while maintaining its workforce of 18,700 employees and adding 150 vocational training positions. The upgrades will allow the plant to become a center for building more efficient engines, hybrid powertrains and fuel cell systems. "Alternative drive systems are an important element of our future mobility," says Mercedes-Benz's Markus Schafer. "Their share of automotive production is set to steadily rise over the next few years, complementing our highly efficient engines within the portfolio. This is what we have laid the groundwork for today." Read more at Reuters, or in the press release below. The Department of Energy is providing $20 million in funding for the development of more efficient high speed industrial motors and drives. Ditching old motors and gearboxes for ones that use integrated power electronics could help decrease the energy consumption of the industrial sector, which currently uses more than 25 percent of the electricity generated in the US. The projects being funded will reduce losses and decrease the size of drive systems used in industries like petroleum refining and natural gas, which could affect the lifecycle efficiency of transportation fuels. Read more at Energy.gov.