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Daimler, Geely mull China as production hub for hybrid powertrains

FRANKFURT — Daimler and Geely on Friday said China could emerge as a manufacturing and export hub for hybrid powertrains jointly developed for Volvo and Mercedes-Benz cars. Earlier this week, Daimler said it would cooperate with China's Geely to build next-generation combustion engines for use in hybrid vehicles. The engines will be produced in China as well as in Europe, and Geely and Daimler will cooperate in engineering, sourcing and production, the companies said in a joint press release. "The export of the engine from China is considered to be an option," the release further said. Mercedes-Benz aims for more than half of its passenger car sales to be comprised of plug-in hybrids or purely electric vehicles by 2030. Geely is ChinaÂ’s most internationally known automaker. It owns Volvo Cars and Lotus, almost half of Proton and 9.7% of Daimler. Through wholly owned company Polestar, it builds low-volume Polestar 1 hybrid performance cars in the western city of Chengdu and Polestar 2 volume sedans in Taizhou in the east. "The companies plan to develop a highly efficient modular engine," a spokesman for Daimler said, adding that it would be used in hybrid drivetrains and manufactured in Europe and China. The modular engine will be used in cars under different marques at Geely and Daimler, a person familiar with the matter said on condition of anonymity as the companies are still in the early stages of developing the engine. An Conghui, President of Geely Holding Group, President and CEO of Geely Auto Group said: “This project reflects the need for economies of scale and targeted research and development investment in clean and highly efficient powertrains and hybrid drive systems and their applications." Geely also plans to build a plant with annual manufacturing capacity of 30,000 premium EVs in the western city of Chongqing, run by a wholly owned, newly registered company, according to documents on its website. Geely and Polestar declined to comment. The plan comes as foreign automakers including BMW AG and Tesla expand EV production in the worldÂ’s biggest market, sourcing major EV components such as batteries locally and often even exporting a portion of the vehicles it builds.   Auto News Earnings/Financials Green Plants/Manufacturing Mercedes-Benz Volvo Green Automakers Future Vehicles Hybrid

Mercedes GLE Coupe spotted in almost undisguised AMG form

Say what you will regarding the form and function of the BMW X6, the bottom line is that BMW essentially pioneered a winning formula, sloping a roofline onto an existing model to make a new and highly lucrative) derivative. No wonder rival Mercedes-Benz is clamoring to follow suit with models like the one pictured here. Under development for some time now, the model originally slated to be called the MLC and now expected to be dubbed GLE Coupe looks about ready for its big debut. It's based on the replacement for the current M-Class (to be rechristened GLE) but with that vital sloping roofline to make it more rakish. This particular example seems to be an AMG version and was spied with only minimal camouflage around the front and rear bumpers while undergoing testing in snowy climes. That could be the full-on GLE63 AMG performance variant, or the new AMG Sport model destined to debut at the Detroit Auto Show next month. If it's the former, expect it to be packing the same 4.0-liter twin-turbo V8 as the new Mercedes-AMG GT, where it produces either 462 horsepower or 510 depending on spec - ready to take on the X6 M and whatever Audi is preparing to throw at it.

Smart brand might be doomed

Reports are painting a less than rosy picture of the Smart brand's future. The Daimler-owned carmaker is going fully electric in 2020, but that might not be enough to keep it alive for long. Inside sources, quoted by Automobile Magazine, are saying Renault is likely to pull out of the partnership that created the current Smart ForTwo/Renault Twingo pairing introduced in 2014. The two rear-engined cars share a platform, and when the current Twingo is done for, Renault might want to part ways. In addition, Mercedes isn't willing to prop up Smart on its own, and there is a possibility that the entire Smart brand could be shuttered by 2026. A previous joint venture was the ForFour hatch co-developed with Mitsubishi, and despite the ForFour name living on in the current generation rear-engined car, the earlier FWD hatchback has quickly been forgotten. Not long ago, Smart presented its Forease open-top concept to give customers a glimpse of what future Smart cars would look like, but at its heart the Forease was still a current Smart dressed up with concept car details. The next-generation Mercedes-Benz A-Class is to be signed off in 2021 for a 2025 introduction, and it can be underpinned by a more flexible, fully scalable platform that could also serve to support a new entry-level Mercedes-Benz vehicle that could render the separate Smart brand pointless. Then there's Geely, who now owns nearly 10 percent of Daimler, and who is partnering with Daimler to launch a new "premium" ride-hailing venture in China. As Geely develops its mobility solutions, it is likely to keep an eye on Smart: Smart cars have been car-sharing staples around the world for quite a while, from users such as Car2Go. Automobile Magazine says that if a Smart is co-developed with Geely, it might suit the Chinese market well, but a global business case might be challenging. In any case, if Smart wants to survive beyond the current Renault partnership, the new model should be agreed upon quickly, and it must be based on a platform flexible enough to support full electric drive. Reportedly, there are now ongoing feasibility studies for a fully electric Daimler "U-Class," which would include a Smart-like three or five-door hatch with two wheelbase options, a ride-sharing shuttle with autonomous capabilities, and an urban delivery panel van. But Smart must justify itself for the upcoming decades, or the future Daimler products that occupy its niche will be wearing a three-pointed star instead.