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Mercedes-Benz launching midsize pickup by end of decade

The pickup is about to get a rethink from Germany. In a rather surprising announcement, Mercedes-Benz says that it's planning to have a midsize truck on the market before the end of the decade. Before you get too excited to drive a pickup with the brand's famous star on the grille, there's some disappointing news. Mercedes is quite clear that the US isn't among the intended markets for the midsize truck, and the company specifically outlines the model for Latin America, South Africa, Australia and Europe. Also, this is a product being developed by the more commercially-minded Mercedes-Benz Vans division responsible for the Sprinter and upcoming Metris. With that in mind, don't expect the interior of an S-Class with a bed in the rear. In fact, at the moment Mercedes isn't giving away many details about its truck, although the company suggests a payload capacity of around 2205 pounds. Inciting this development is the current boom in the midsize truck segment. We're seeing that happen with models like the latest Ford Ranger, the next Toyota Hilux (in development) and a future FCA vehicle. "As part of our 'Mercedes-Benz Vans goes global' strategy, the pickup is the ideal vehicle for the international expansion of our product range with a newly developed model," division boss Volker Mornhinweg said in the brand's announcement. Rumblings of a possible Mercedes pickup came up years ago as a possible partnership with Nissan, but those reportedly would have been badge-engineered models. This latest truck appears to be something wholly Mercedes. "We will enter this segment with our distinctive brand identity and all of the vehicle attributes that are typical of the brand with regard to safety, comfort, powertrains and value," said company boss Dieter Zetsche. Get ready for the Mercedes-Benz among pickups: Mercedes-Benz Vans to launch midsize pickup Stuttgart, Mar 27, 2015 Expansion of product range for sustained global growth Market for midsize pickups primed for first model from a premium manufacturer Mercedes-Benz to enter the high-volume midsize segment before end of decade Main markets: Latin America, South Africa, Australia, and Europe Stuttgart – Before the end of the decade, Mercedes-Benz will expand its product range into a promising segment by launching the first pickup from a premium manufacturer. Thanks to their versatility, all-round utility, and payload of about one metric ton, pickups are popular across the world and thus have good sales potential.

Car subscription services: A slow, expensive start — but the potential is huge

Americans are used to paying for subscriptions — to magazines and cable television, for instance — but experience shows they'll cancel when the price of admission gets too high, or there are more tempting alternatives. Cord cutters ditched nearly 1.5 million pay-TV subscriptions in 2017, according to a survey by Leichtman Research Group. Cable TV started out cheap with basic offerings, and then got expensive. The auto industry's subscription offerings are new, but they're starting out costly, and not price-competitive with traditional leasing. The upside is that they take the hassle out of car ownership for busy people by letting the service take care of maintenance, insurance, licensing and taxes. And they give consumers choice, often allowing relatively painless switches between different cars in the automakers' lineup. Subscription services also point the way toward an ownership-free auto experience, and offer an easy transition to a potential world where ride- and car-sharing will be dominant. Subscriptions are here to stay, but consumers may take a while to "get" them. Lincoln's subscription service for lightly used 2015 to 2017 models, offered through the Ford-owned Canvas beginning this year, got off to a slow start. Many early subscribers canceled. Last month, Cadillac announced it would " temporarily pause" its $1,800-per-month Book subscription service for "adjustments" as of December 1. According to the Wall Street Journal, "Snags with the back-end technology used to support the service made some customer-service functions tedious and time-consuming, adding costs for the company." The challenge for automakers is to come up with a strategy that offers consumers a compelling, affordable option to regular ownership, and one that can also make a profit. I think they'll find that sweet spot, but they're not there yet. Jack Nerad, former executive editorial director at Kelley Blue Book and author of " The Complete Idiot's Guide to Buying or Leasing a Car," points out that "A lot of people expected that subscriptions would be very valuable for people who wanted inexpensive transportation, but the reality is quite the opposite. Subscriptions are offering more choices for the wealthy.

Zetsche's CEO tenure extended through 2016 at Daimler

There appear to be two takes on Daimler CEO Dieter Zetsche having his contract extended for three more years, to 2016. A report in The Detroit News quotes the chairman of Daimler's supervisory board, Manfred Bischoff, talking up the stability at the top, "With today's extensions of the contracts of Dieter Zetsche and Thomas Weber, we are maintaining the important continuity at the top executive level." Bischoff also stated that that Zetsche has a plan to "further enhance Daimler's overall performance."
Over at Reuters, though, the three-year extension was seen as a lack of complete confidence in Zetsche's plans, since his contract was supposedly meant to be extended by five years. A spokesman said the board decided to extend executive contracts by only three years if the person was 60 or would turn 60 during the contract, but that was news to observers. Zetsche wants to make Mercedes-Benz the top selling luxury manufacturer globally by 2020, but has fallen to third place behind Audi and BMW. It hasn't held the top spot 2005, and investors judged it valued at half that of BMW at the end of 2012 once Daimler's truck business was subtracted.
Analysts cites the fact that Daimler stock hasn't bested its rivals but twice in twelve years, and that the company revised its profit target downward last year by nearly one billion euros, warning of stagnant earnings this year and will miss its original margin target for 2013.