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Daimler and Volvo could jointly develop internal combustion engines

BERLIN — Luxury German carmaker Daimler and Volvo, owned by China's Geely, are considering cooperating to cut the costs of developing combustion engines, a magazine reported on Sunday, citing unnamed company sources. The Automobilwoche weekly cited a Volvo manager as saying there were initial talks with Daimler, but no concrete plans, while a company spokesman said it was too early to talk about firm projects, although it was not excluding anybody. A Daimler spokesman said the company's cooperation with Geely, which owns a 10% stake in the German carmaker, was developing in a positive way, but declined to comment further. Global tariffs, accelerated by a trade war between China and the United States, as well as higher investment requirements for electric and autonomous vehicles, are forcing carmakers to seek new ways to cut and share costs. In October, Volvo said it would merge its engine development and manufacturing assets with those of Geely, creating a division to supply in-house brands and also potentially others with next-generation combustion and hybrid engines. Automobilwoche said this new division would start operating by the end of March, which could be a possible starting point for cooperation with Daimler, while a further step could be a partnership to develop electric power trains. Geely and Daimler have said they plan to build the next generation of Smart electric cars in China through a joint venture and the two companies are also cooperating on a premium ride-hailing service in China. Geely bought Volvo Cars in 2010 from Ford, allowing the Swedish brand to operate on an arms-length basis. But in recent years, it has deepened cooperation between the two brands. Volvo already supplies engines to some Geely-branded vehicles, sharing technology through Geely's Lynk brand. Both companies share and develop common vehicle platforms. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Mercedes-AMG GT3 opts for big displacement without a turbo

There was a time when there were numerous categories in sports car racing: GT1, GT2 , GT3... but these days they've all been amalgamated into the latter. That's left a GT3 class packed with competitors and possibly more contentious than ever before. What you see here is Mercedes' new challenger, in official form after being leaked earlier today by the French website Le Point. Replacing the SLS AMG GT3 that won its class (among other races) the Nurburgring 24 Hours in 2013 is the new Mercedes-AMG GT3. Set to be revealed at the Geneva Motor Show, it's the racing version of the new Mercedes-AMG GT, and aside from looking the business, it has the makings of a highly competitive entry. As you can see, it sits closer to the track surface than the road-going version, and packs more extreme aero – including a front splitter you could serve dinner off of, little winglets to deflect the air away from the front tires, deep side sills, a massive rear wing and (though we can't see it presently) what promises to be a very large rear diffuser. It's also got more ventilation to feed the engine and cool the brakes, and a stripped-out cabin with full roll cage and a steering device that's long since evolved beyond resembling an actual "wheel." To save weight, Mercedes has redone many of the panels out of carbon fiber, but one of the most intriguing elements is what you'd find under that woven hood: instead of adapting the 4.0-liter twin-turbo V8 from the road-going GT, AMG has slotted in the larger atmospheric 6.3-liter V8 from the outgoing racer – coupled to a six-speed sequential gearbox. With its new GT3 entry, Mercedes surely hopes to take a slice of the customer racing market that Porsche in particular has developed into a successful and profitable business over the years. Racing fans, however, will be more interested to see how this puppy fares at Le Mans, the Nurburgring, the Blancpain sprint and endurance series, the United SportsCar Championship, the FIA World Endurance Championship and countless national series around the world. It'll have tough competition on its hands, though, from the likes of the Porsche 911 RSR, Audi R8 LMS, Bentley Continental GT3, Ferrari 458 Italia GT3, McLaren 650S GT3, Lamborghini Huracan GT3 and countless others that battle for glory on a racetrack somewhere on any given Sunday. World premiere in Geneva for spectacular AMG racing car All-out attack : the new Mercedes-AMG GT3 Affalterbach.

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.