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How chasing Ferrari improved Aston Martin, with help from Mercedes-Benz

GAYDON, England — After decades of ups and downs, British carmaker Aston Martin Lagonda is charting a more efficient and profitable way forward, leaning on technology from shareholder Mercedes-Benz to make the costly leap to electric vehicles (EVs). Less than two years after billionaire Lawrence Stroll drove to the rescue of James Bond's car brand of choice, Aston Martin has undergone a manufacturing makeover to lift margins and help it become more like rival Ferrari. Stroll, Aston Martin's largest shareholder and executive chairman, who is also an avid fan of Ferrari, says after vehicle sales jumped 82% in 2021 the carmaker's transformation to long-term profitability is well under way, with new cars coming and funding secured through 2025. But analysts say Aston Martin, which has gone bust seven times since it was founded in 1913 and has flirted with death as often as Agent 007, is still burning through piles of cash. Some question its ability to generate Ferrari-like sales to fund the vast cost of electrification. "It's precarious and it is possible for this company to go bust," said Redburn equity research analyst Charles Coldicott. "I don't think it's a controversial thing to say even though Aston wouldn't like to hear it." Asked to comment on perceptions of a shaky future, an Aston Martin spokesman reiterated Stroll's view that the carmaker is well on the way to long-term profitability and that it has adequate access to cash. On a tour of the carmaker's Gaydon factory, Tobias Moers, formerly head of Mercedes' high-performance AMG brand and Aston Martin chief executive since August 2020, rattles off a list of moves including cutting one of two assembly lines and bringing more bespoke items like seats in-house. Perhaps the biggest shift has been to focus on higher-value customer-driven and customized orders — a big part of Ferrari's success — rather than over-producing and churning out sports cars wholesale, which then had to be discounted. "When I came in, the company was manufacturing-dominated instead of engineering-led, which for an auto luxury business is insane," Moers said. "In a company this size, you need maximum flexibility and agility." Moers has cut Aston Martin's inventory to 600 sports cars from 2,000 — its cars sell for an average of around 150,000 pounds ($195,750) — and customized orders now account for 50% of sales versus 6% when he joined the firm. At that point, the carmaker was in trouble after a disastrous 2018 public listing.

Mercedes forced to lower MPG ratings on two C300 models *UPDATE

*UPDATE: Donna Boland, manager of corporate communications at Mercedes Benz USA, told AutoblogGreen that the sticker change only applied to around 500 C-Class vehicles on dealer lots, since a new C-Class came out in late August. "About 500 are left in the United States, and we've relabeled them," she said. First Hyundai, then Ford and now Mercedes-Benz. The list of companies that have had to change their vehicles' official EPA fuel economy ratings has just grown by one with the announcement that the 2013 and 2014 C300 4-Matic FFV and PZEV versions need to have their EPA labels adjusted. The changes aren't massive, at most one mile per gallon. The changes aren't massive, at most one mile per gallon, but they are lower than before. The FFV version goes from 20 to 19 mpg in the city while the PZEV drops one mpg across the board from 23/20/29 combined/city/highway) to 22/19/28. The FFV's combined (22) and highway (27) ratings stay the same. Other Mercedes vehicles that were spot checked turned out to have accurate labels. The problem, which is reminiscent of the issues that Ford had with the Total Road Load Horsepower, was that "Mercedes underestimated the impact of aerodynamic drag and tire rolling resistance known as 'road-load,'" the EPA said in a statement you can read below. We have asked Mercedes for more information on the issue but have not yet heard back. We're not sure how many vehicles the EPA is retesting (or asking to be retested), but the agency says that the C300 models were evaluated again by Mercedes "with EPA oversight" and the EPA did its own tests at the National Vehicle and Fuel Emissions Laboratory in Ann Arbor, MI. Christopher Grundler, the director of EPA's Office of Transportation and Air Quality, said that the EPA knows that the changes are minimal, but that, "it is important that our oversight system is producing the correct results because even one MPG matters to consumers." In case you need a primer in the recent history of companies adjusting their EPA numbers, check out this and this. Based on today's news, we won't be surprised to hear more changes are coming. EPA Requires Mercedes-Benz to Correct Fuel Economy Labels for Two C300 4-Matic Vehicles WASHINGTON - The U.S. Environmental Protection Agency (EPA) is revising estimates for two 2013/2014 Mercedes C300 4-matic vehicles, the FFV and PZEV, to ensure consumers are given accurate fuel economy values.

Mercedes-Benz Museum introduces classic car sales

Mercedes is aiming to take the guesswork out of buying a classic car with its latest initiative. Instead of buying a classic Benz from a private owner, the public can now purchase directly from the Mercedes-Benz Museum in Stuttgart, Germany. The program is called "All Time Stars," and is split into three categories. Vehicles in the Premium Edition are in pristine condition, with low mileage, and fully restored by the Mercedes-Benz Classic division. Collectors Edition cars are guaranteed to be in tip-top shape both technically and aesthetically, but have some miles on the odometer and the patina to go with them. Finally the Drivers Edition are meant for everyday driving – fixer-uppers that "still offer potential for further restoration work." Regardless of their category, each vehicle that passes through the program is subject to an extensive 160-point inspection. The process identifies any issues, and any modifications to the vehicle's original condition that may have been carried out over the course of its history. At the moment, the museum is highlighting three examples up for sale. The oldest is a Type 630 Kompressor from 1929. The newest is an E320 convertible from 1995 with 31,000 miles on the odometer. In between is also a 280 SE sedan of 1973 vintage. Head to the program's website and you can also see examples like a '79 450 SEL, a '94 E60 AMG, a '92 500 SL, and a rare CLK-LM racer from 1998. There are several more that have already been sold through the program, and more to be added to the catalog in the near future. Mercedes-Benz Museum selling classic cars directly: 'All Time Stars': modern classics and vintage greats from Mercedes-Benz Stuttgart, Nov 05, 2015 The Mercedes-Benz Museum is now selling classic cars from all periods under the name All Time Stars. The complete range can be seen on the website alltime-stars.com. You can also view the vehicles in person at the Mercedes-Benz Museum and arrange the purchase there too. A team of sales consultants are on hand to provide detailed information and extensive descriptions of the vehicles in order to offer as much transparency as possible. Buying a classic car is a matter of trust. It has to be. Otherwise what is often supposed to be a dream come true may in fact turn sour. The All Time Stars by Mercedes-Benz aim to extend the brand's extensive quality commitment to the purchase of classic cars. The focus is on vehicles that are suitable for everyday driving.