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Mercedes may be working on a new electric car dubbed 'Ecoluxe'

Automobile has a lengthy piece this month on how the four German mass-market luxury manufacturers each plan to go after Tesla with their own electric vehicles. It was written by Georg Kacher, the magazine's European bureau chief, and the English version came a month after he wrote the German-language original for Autobild. Tesla isn't exactly a threat to the Germans, but, according to the report, the Model S is planting the right kinds of seeds in niches that are important to the luxury players. The thinking is that - in addition to needed electric vehicles anyway for stricter US regulations - it's better to start designing the machinery now. The article posited Porsche's attack would rest on the coming Panamera platform, but a big hurdle would be battery placement. Unable to find one large space for a lithium-ion pack, engineers would instead put batteries everywhere they could, for a supposed tally of some "108 battery pouches" throughout the body. A few days after the Automobile piece, however, Porsche publicly said it had no intention of challenging the Model S, because the enthusiastic driving the brand is known for doesn't jive with useful range. In Kacher's retelling, Mercedes' plans are even more ambitious, supposedly taking aim at the Model S and the coming Model X. It would do this with an investment in excess of $2 billion in a program called "Ecoluxe" – Mercedes has no brand division akin to BMW's i and Audi's e-tron. The new brand would create a four-strong family of bespoke electric vehicles: a smaller platform with a wheelbase around 106 inches and a larger one with a wheelbase around 118 inches. In addition, the range would have "provisions for rear-wheel drive, all-wheel drive, and rear-wheel steering." The numbers are impressive: seating for seven in the larger vehicles, both longer than 16 feet, front and rear storage areas, ratings of up to 610 horsepower and production capacity of 80,000 units per year. When would we see such creatures? Perhaps as soon as 2019. We do know that if Tesla can knock the Model X over the outfield fence, automakers are going to have to do something. We don't know what the chances are that Ecoluxe is Mercedes' first move - but such a plan could help explain the weird Mercedes concept spied in October.

BMW X7 rumored to get BMW's best interior, 130,000-euro price

Spanish outlet Motor.es has some info on the coming BMW X7, the sport activity vehicle that will take the Munich brand to the penultimate SUV segment. Unnamed sources said BMW has been working on both the X7 and the future Rolls-Royce all-terrain vehicle for almost two years, and that in BMW guise it will ride on the CLAR (CLuster ARchitecture) platform that will make an appearance later this year under the new 7 Series. The Rolls-Royce, on the other hand, will get its own aluminum spaceframe. The two vehicles will share components, though, which are now being tested. Running gear and engines will borrow from the X5 and X6 tool chests, with rear- and all-wheel-drive configurations mooted and engines ranging from the TwinPower 3.0-liter six-cylinder to an uprated version of the 6.0-liter V12 in the 760iL. The 4.4-liter V8 is mentioned as the middle child and perhaps the base for an X7 M, should one be made. A plug-in hybrid offering could swipe the unit from the X5 xDrive40e PHEV, good for 55MPGe in that current application. The interior, we're told, will be the nicest seen on any BMW, said to surpass that of the new 7 Series. We'll have to wait two years to find out how close all of that is to the mark, but the tidbit that might need some salt sprinkled on it right now is the predicted price: Motor.es says 130,000 euros in Europe, to start. That's not the first time a sky-high price has been predicted, but a leap that far beyond the six-figure mark would readjust all of our expectations for the vehicle when an X5 cost 53,700 euros in France and an X6 costs 70,900 euros. Other outlets predict US pricing to start from around $60,000; the X5 costs $53,900 here, the X6 is $59,600.

BMW preparing new M4 GTS with water injection

Last month, BMW revealed a new safety car for the MotoGP series. Only instead of just taking one of its production models and giving it some flashing lights, special livery and emergency equipment, the Bavarian automaker used the specially equipped M4 to showcase a new water injection system. And now word has it that the tech is being worked into a new M4 GTS. The system sprays water into the combustion chamber in order to lower the temperature of the air and increase the engine's efficiency, thus allowing it to produce more power without overheating, and relying less on ambient temperatures. It does require refilling a 1.3-gallon water tank in the trunk, though. According to Car and Driver, it's that same system that BMW will be installing in the new M4 GTS, taking the place of previous M3 GTS specials. If precedent is anything to go by, the M4 GTS will also be stripped of excess weight and feature a tighter suspension, stickier tires and more, in order to make BMW's muscle coupe even more hardcore and focused for the track. We could be looking at a debut as early as Pebble Beach in August.