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China's BAIC looks to invest in Daimler

Daimler and Beijing Automotive Group (BAIC) are already intertwined in China. Daimler is a 12-percent shareholder in BAIC Motor, the third largest shareholder in the passenger-car division of BAIC. They have a joint manufacturing venture Beijing Benz in which BAIC is the majority partner by one percent, a sales joint venture Beijing Mercedes-Benz Sales Service Co. in which Daimler is the majority partner by one percent, and Daimer says, "BAIC is our most important partner in China." Beijing Benz is ten years old this year. They'll become even closer if talks between the two concerning BAIC taking "a major stake" in the German conglomerate come to anything. Reuters reports that the two are in talks now, with BAIC Chairman Xu Heyi saying it should be resolved one way or another by the end of this year. If they agree, the China-based, Hong Kong-listed company will join Renault-Nissan and the Kuwait Investment Authority as Daimler's top shareholders. Some China analysts see a potential Daimler investment as a coup for BAIC, similar to BAIC's 2009 purchase of old Saab platform, engine, and transmission technologies, that would give it access to technologies it wouldn't have to develop on its own and hastening the development of its own cars. A deal is also seen as potentially opening up export possibilities for the Chinese company. Other analysts aren't sure that BAIC would get any useful technology, noting that that last deal between the two gave BAIC the outdated E-Class platform, but none of Mercedes' headline tech. If a deal is done, BAIC will join Dongfeng Group and SAIC as Chinese automaker investors in western automotive companies.

Weekly Recap: Jaguar takes a leap with price cut, new strategy

Jaguar was one of the famous automotive props and plotlines in the now-iconic drama Mad Men. There's a scene where the show's protagonist, Don Draper, deftly undercuts an influential Jaguar dealer by indicating that get-me-in-the-door local radio spots would be an effective way to sell cars like the slinky E-Type. The British executives think this is folly – Draper knows they will – and his advertising strategy wins out over the dealer's approach to move the metal. Jaguar's not doing that, but half a century later in the real world the company is launching plans to make its cars more attainable to new and younger customers like Millenials. These aren't coupons, but this is a leap for Jaguar, which has long banked on sexy styling and its rich motorsports history to overshadow its past mechanical flaws. Put simply, Jaguar is addressing the reasons why people, especially the younger set, don't buy its cars. The 2017 XE will start at $35,895 when it launches next spring – which makes it an attractive buy for a successful, relatively young person. When it's time to move up, the redesigned XF will be more attainable, coming in at $52,895, which is $5,275 less than the 2015 model. The flagship XJ sedan and the enthusiast-oriented F-Type sports car will also get thousands of dollars worth of added standard features, and Jag is actively pitching them as a better value than their competitors. "The Jaguar brand is on the eve of a major transformation that will see it dramatically increase its presence in the United States luxury marketplace with an expanded lineup, pricing focused on the core of the luxury market, and an all-new ownership package with best-in-class coverage," Joe Eberhardt, CEO of Jaguar Land Rover North America, said in a statement. The brand's quality and reliability dings have also lurked in the back of buyers' minds for decades, though that's an outdated notion. Jaguar placed third in J.D. Power's Initial Quality Study in June and was the top-ranked luxury brand in J.D. Power's Customer Service Index in March. Not content, the company is rolling out an enhanced program called Jaguar EliteCare that launches on 2016 models. It offers a five-year, 60,000-mile limited warranty, the longest among its competitors, with free scheduled maintenance during that period. The plan also covers roadside assistance and connectivity features.

France formally moves to ban Mercedes vehicles using contested refrigerant

That didn't take long. Shortly after a French administrative court gave the French government a ten-day window to reconsider its ban on registrations of Mercedes-Benz A-, B- and CLA-Class cars using the prohibited R134a refrigerant, the government cited an EU directive to formalize banning the sale of the cars. The country's environmental ministry said that registrations "will remain forbidden in France as long as the company does not to conform to European regulations," meaning so long as they do not use the approved R1234yf refrigerant.
Daimler had won the administrative court decision by challenging France's application of a "safeguard" provision in which the EU allows a country to block sales of cars that would "seriously harm the environment." In spite of Daimler's victory, France has cited that very provision as basis for the continuation of the ban.
Daimler got permission from Germany's KBA federal motor authority to keep selling cars with the coolant banned by EU politicians, and is using that national permission as the right to sell the cars throughout Europe. Meanwhile, above that battle, German politicians are asking the EU to let Mercedes sell the cars in France while the KBA does more testing, at the same time as the EU is threatening Germany with repercussions if it doesn't bring the KBA and Daimler into line.