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Mercedes may be working on a new electric car dubbed 'Ecoluxe'

Automobile has a lengthy piece this month on how the four German mass-market luxury manufacturers each plan to go after Tesla with their own electric vehicles. It was written by Georg Kacher, the magazine's European bureau chief, and the English version came a month after he wrote the German-language original for Autobild. Tesla isn't exactly a threat to the Germans, but, according to the report, the Model S is planting the right kinds of seeds in niches that are important to the luxury players. The thinking is that - in addition to needed electric vehicles anyway for stricter US regulations - it's better to start designing the machinery now. The article posited Porsche's attack would rest on the coming Panamera platform, but a big hurdle would be battery placement. Unable to find one large space for a lithium-ion pack, engineers would instead put batteries everywhere they could, for a supposed tally of some "108 battery pouches" throughout the body. A few days after the Automobile piece, however, Porsche publicly said it had no intention of challenging the Model S, because the enthusiastic driving the brand is known for doesn't jive with useful range. In Kacher's retelling, Mercedes' plans are even more ambitious, supposedly taking aim at the Model S and the coming Model X. It would do this with an investment in excess of $2 billion in a program called "Ecoluxe" – Mercedes has no brand division akin to BMW's i and Audi's e-tron. The new brand would create a four-strong family of bespoke electric vehicles: a smaller platform with a wheelbase around 106 inches and a larger one with a wheelbase around 118 inches. In addition, the range would have "provisions for rear-wheel drive, all-wheel drive, and rear-wheel steering." The numbers are impressive: seating for seven in the larger vehicles, both longer than 16 feet, front and rear storage areas, ratings of up to 610 horsepower and production capacity of 80,000 units per year. When would we see such creatures? Perhaps as soon as 2019. We do know that if Tesla can knock the Model X over the outfield fence, automakers are going to have to do something. We don't know what the chances are that Ecoluxe is Mercedes' first move - but such a plan could help explain the weird Mercedes concept spied in October.

Audi and Mercedes both outsell BMW in January

There won't be any celebrations in Munich this month, as BMW was outsold by arch-nemeses Audi and Mercedes-Benz. The Bavarian company finished behind Audi in January, which took the top spot for the first time since June of last year, Bloomberg reports. Ingolstadt rode high on a 10-percent bump in sales, while Mercedes saw a larger 14 percent increase. BMW, meanwhile, only saw a modest 6.3-percent sales increase last month, thanks in large part to its struggles in China. The company's sales there increased at about half the rate of its chief competitors, with a 7.9-percent jump to Mercedes and Audi's roughly 15-percent increases. Perhaps more worrying for BMW, though, is that this could become something of a trend for the company. According to Bloomberg, issues with Chinese dealers who cancelled orders over sales targets and bonuses combined with what the publication calls aging models, could spell bad news for the German marque. "This looks like a pretty significant decline in growth compared to Mercedes and Audi," Bankhaus Metzler analyst Juergen Pieper told Bloomberg. "I think this will continue during the next few months." News Source: BloombergImage Credit: Matthias Schrader / AP Earnings/Financials Audi BMW Mercedes-Benz

Lewis Hamilton scores a record 80th pole in Japan, Vettel ninth

SUZUKA, Japan (Reuters) - Formula One leader Lewis Hamilton seized a record-extending 80th pole position at the Japanese Grand Prix on Saturday, timing his sole flying lap to perfection while Ferrari's Sebastian Vettel managed only ninth. The Mercedes driver, in dominant form all weekend at the Suzuka circuit, pumped in a one minute 27.760 second lap on the super-soft tires while it was still only just spitting with rain. Vettel and Ferrari teammate Kimi Raikkonen, who went out on intermediate tires in the final part of qualifying with the track still dry, lost time coming back in to fit the super-soft tires. The German then made another mistake on his first flying lap and was unable to get another one in as the intermittent drizzle turned into a full-blown shower that drenched the track. Meanwhile, Hamilton – who along with team mate Valtteri Bottas had gone out straight away on the super-soft tires to beat the rain – was lighting up the timing screens. "The team have done an amazing job this weekend, and the call that we made for Q3 was probably the most difficult," said the Briton, joined by Bottas on the front row after the Finn completed a second successive Mercedes front row lockout. "It's so difficult when the pressure is on to make the right call but that's the big difference between us this year and that's why we're the best and the team deserve it," added Hamilton. Vettel trails his fellow four-times champion by 50 points in the standings with just four races left after Japan. His hopes are fading fast and he needs a huge stroke of luck now to reignite his challenge. "Obviously it's not the position we deserve to be in," said the 31-year-old. "I think we have better speed than ninth but we'll start there and see how it goes. "Anything can happen tomorrow. Tomorrow is a new day." RICCIARDO FUMES Vettel's misfortune allowed 21-year-old Dutch driver Max Verstappen to qualify third for Red Bull. "We have a bigger chance now to be on the podium," said Verstappen, doubting that he would need to worry too much about the others' title battle: "Is it still a battle? I'm not sure," he said. While the Dutchman celebrated, teammate Daniel Ricciardo was left hoarse with anger after a power unit problem sidelined him during the second phase of qualifying before he had set a time. The Australian, as a consequence, is set to start 15th. "I just can't catch a break," said Ricciardo, who is leaving Red Bull for Renault at the end of the year.