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Mercedes-Benz may create electric-only brand

Daimler's Mercedes-Benz division may follow in fellow German automaker BMW's footsteps by launching its own separate brand for electric vehicles, Hybrid Cars says, citing German publication Handelsblatt, which quoted people familiar with the process. Daimler's board may make the decision to go ahead with the plan as early next month. And the brand may officially be unveiled at the Paris Motor Show in September. Unlike BMW and the i brand, Mercedes would use its existing factories to produce the newly-branded vehicles instead of operating out of a separate one as the i brand does. The first vehicle under the brand is likely to be an SUV model based on the Mercedes-Benz GLC crossover vehicle and would start sales next year. The product line would be broadened further in 2020. Daimler declined to comment, according to Handelsblatt. Mercedes-Benz and BMW wouldn't be the only two German automakers with plans for more electric vehicle sales. Volkswagen has a plan to unleash as many as 20 electric vehicles and plug-in hybrids to the public by 2020, including the Phaeton and the Audi A8. On that note, reports surfaced last month that VW may build its own "Gigafacory" as it prepares to widen its plug-in vehicle push and bring down their costs. As for US sales, Smart sold 313 ForTwo Electric vehicles, down 43 percent from a year earlier. Meanwhile, BMW's i sales in the US fell 40 percent from a year earlier to 2,723. Currently, Mercedes-Benz's only two electric vehicles are the Mercedes B-Class Electric Drive and the Smart ForTwo Electric two-seat vehicle. In the meantime, take a look at Autoblog's First Drive of the B-Class Electric. Related Video: News Source: Handelsblatt, Hybrid Cars Green Mercedes-Benz smart Electric

Dealers mobilize to protect their margins from automaker subscription services

Six individual auto brands — Lincoln, Cadillac, Porsche, Mercedes, BMW and Volvo — have established or are trialing a vehicle subscription service in the U.S. Three third-party companies — Flexdrive, Clutch and Carma — run brand-agnostic subscription services. And three automakers — Mercedes-Benz, BMW, and General Motors — have also launched short-term rental services. Dealers, afraid of how these trends might affect their margins, are building political and lawmaking campaigns to protect their revenue streams. So far, three states are investigating automaker subscriptions, and Indiana has banned any such service until next year. It's certain that those three states are the first fronts in a long political and legal battle. Powerful dealer franchise laws mandate the existence of dealers and restrict how automakers are allowed to interact with customers to sell a vehicle. On top of that, Bob Reisner, CEO of Nassau Business Funding & Services, said, "Dealers and their associations are among the strongest political operators in many states. They as a group are difficult for state politicians to vote against." In California earlier this year, the state Assembly debated a bill with wide-ranging provisions to protect against what the California New Car Dealers Association called "inappropriate treatment of dealers by manufacturers." One of those provisions stipulated that subscription services need to go through dealers, but that item got stripped out when dealers and manufacturers agreed to discuss the matter further. In Indiana, Gov. Eric Holcomb signed a moratorium on all subscription programs by dealers or manufacturers until May 1, 2019, to give legislators more time to investigate. Dealers in New Jersey have taken their campaign to the state capitol, asking that the cars in subscription programs get a different classification for registration purposes. Automakers run the current subscription services and own the vehicles. Sign-ups and financial transactions happen online or through apps, leaving dealers to do little more than act as fulfillment centers to various degrees, with little legal recourse as to compensation amounts when they're called on to deliver or service a car. That's a bad base to build on for business owners who've sunk millions of dollars into their operations.

Mercedes could make EV batteries with Audi, BMW

It's not a big leap from digital maps to batteries, it turns out.The head of Mercedes-Benz parent Daimler said recently that he envisions his company working together with German automotive competitors BMW and Volkswagen to further accelerate electric-vehicle battery technology. The three automakers recently worked together to enhance their in-car maps systems. Daimler CEO Dieter Zetsche talked about "commonalities" between automakers, not the least of which is the need for all of them to achieve increasingly stringent fuel-economy requirements in the European Union, at the Frankfurt Auto Show last week, according to Reuters. While these companies have made their own inroads as far as plug-in vehicles go, they are all behind the Renault-Nissan Alliance when it comes to public deployment of electric vehicles. This summer, Daimler, Audi and BMW hooked up to acquire the Nokia Here digital-mapping service for about $2.8 billion. The triad of automakers beat out companies such as Apple and Uber to buy the entity, which was founded in 1986 as Navteq. Nokia bought the company in 2007. The acquisition makes sense as the automakers work on improving their products with features like cloud-based data to warn drivers of icy roads and traffic jams. The technology will likely also eventually be used in autonomous vehicles. Automakers working together for a common goal of improved technology is nothing new, of course. General Motors and Honda agreed in 2013 to work together to accelerate hydrogen fuel-cell drivetrain development. Earlier that same year, Daimler said it would work with Ford and Nissan in a separate collaboration to speed up the development of hydrogen fuel-cell technology. Related Video: