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Daimler wants to cut EV research spending as it preps EQ

Daimler AG is hoping that the legwork it's done preparing its EQ electric-vehicle sub-brand will allow it to slightly reduce annual spending on plug-in vehicle technology. The Mercedes-Benz parent is looking to cut electric-vehicle research-and-development spending to $13.2 billion in 2017 from about $15.4 billion this year, Bloomberg News says, citing comments Daimler CEO Dieter Zetsche made to journalists in Hamburg, Germany, this week. Daimler's annual R&D spending is up from about $11.5 billion in both 2013 and 2014. Like its competitors – for example Audi and BMW and its i sub-brand – Daimler is aiming to have as much as 25 percent of its annual vehicle sales be battery-electric within the next 10 years as part of an effort to meet stricter greenhouse-gas emissions mandates in both Europe and North America. In fact, Mercedes-Benz and Daimler's Smart division collectively have at least 10 electric-vehicle models on their slates during the next few years, though Zetsche said the German automaker will continue to find ways to make its gas- and diesel-powered vehicles more fuel-efficient as well. Daimler introduced a concept version of the Generation EQ electric SUV at the Paris Motor Show late last month. It comes powered by two electric motors and is made up of a combination of steel, aluminum, and carbon fiber, and boasts a 311-mile single-charge range (on the relatively lenient European testing standards). The SUV also has 402 horsepower, and the ability to go from 0 to 60 miles per hour in less than five seconds. Zetsche said at the time that Daimler was prepping powertrains and platforms for electric sedans, wagons, coupes, and roadsters, in addition to SUVs. Additionally, Daimler's Deutsche Accumotive unit is producing the lithium-ion battery packs for the EQs. Featured Gallery Mercedes-Benz Generation EQ Concept: Paris 2016 View 19 Photos News Source: Bloomberg News via Automotive News-sub.req. Green Mercedes-Benz smart Electric eq mercedes eq

Smart considering Forfour-based SUV

Can we interest anyone in the idea of a rear-engined SUV? Because that's what Daimler is reportedly considering for its Smart brand. According to Autocar, a crossover could be the next addition to the Smart lineup. It'd be based on the same architecture as the Smart Forfour and Renault Twingo, which are built on a rear-engined platform that gives the steering rack up front more range of motion to provide the vehicle a tight turning radius. Because the Smart and Twingo don't share much with other products in either automaker's stable, they're said to be eagerly looking for ways to make the most of their investment, and spinning off a sport-ute variant could be just the ticket. The resulting crossover could end up a little longer than the Forfour and Twingo, owing to more rugged bumpers, but would likely pack the same three-cylinder engines (in atmospheric and turbo guises) and choice of five-speed manual or six-speed dual-clutch transmissions. Whether the platform could be modified to accommodate all-wheel drive as well remains a big question mark, but we'd point out that Audi managed to squeeze its Quattro system into the A1 even though the VW Polo platform on which it was based was never designed for it. Renault could prove eager to get in on the project as well with a version of its own, giving both automakers a worthwhile challenger to the nimble little Fiat Panda 4x4. The bigger question is whether it would ever make its way to US showrooms. Currently the smaller Fortwo is the only Smart being offered in North America, with the Forfour not earmarked for these shores – and Renault of course doesn't market here altogether.

Daimler looks to skirt France's 35-hour workweek

Daimler has a brewing labor battle at its Smart factory in Hambach, France, over just how long the workweek should be. Under a French law enacted in 2000, workers are only required to be on the job 35 hours per week, but recent tweaks to the rule allow for companies to negotiate more flexibility. Now, the automaker is asking employees for 39 hours weekly in exchange for six euros ($6.70) per hour more during the extra time and a one-time bonus of 1,000 euros ($1,117), according to Bloomberg. The plant's labor union isn't taking kindly to Daimler's offer, though. "It's a way to freeze wages without any guarantees in return," union representative Patrick Hoszkowicz said to Bloomberg. One problem is that the six-euro raise during the four extra hours per week is less than France's 9.61-euro ($10.75) minimum wage. A spokesperson for the automaker countered in the report that the changes increase "competitiveness to ensure viability." The outcome of the deal could have major effects for Daimler because the Hambach plant is a major production hub for Smart. The automaker spent millions of euros there in 2009 for the Smart Fortwo Electric Drive. The factory then received another 200 million euro investment in 2013 to prepare for the brand's latest minicar models. While a 35-hour week might sound like a dream to many Americans, it's not even truly the norm in France. According to Bloomberg citing Eurostat data, the average full-time worker there is actually on the job 40.5 hours weekly, an hour less than Europe as a whole.