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Mercedes spent ˆ250 million to win Formula One titles last year

Success in Formula One requires skill, diligence, commitment and ingenuity. It also takes truckloads of money. In the case of Mercedes in last year's world championship, in which it took both the drivers' and constructors' titles in dominant style, those truckloads came to ˆ250 million last season alone – equivalent to over $285m in dead presidents. A report from Germany's own Auto Motor und Sport details the staggering investment that Mercedes made in order to get to the winner's circle last season. After 15 seasons with McLaren netting one constructors' and three drivers' titles, Mercedes motorsport chief Norbert Haug convinced the Daimler board late in 2009 to take over the Brawn GP team that had just won the championship. Because the team would be getting a large payout from Bernie Ecclestone as the returning champions the following year, and with sponsors lined up, Daimler only had to pony up a small portion of a smaller budget: in 2010 (its first season under the Mercedes banner), the team ran on a budget of "only" ˆ153 million ($175m). Over the course of the following seasons, though, the team's share of the TV revenues from Formula One Management went down as Mercedes struggled to climb back up the standings, but successive advocates (including Haug, Ross Brawn and Niki Lauda) successfully convinced the bean-counters in Stuttgart to ratchet up the payments. By 2012, the budget was expanded to ˆ200 million, and further climbed to ˆ250 million in 2013 and 2014. Fortunately for Daimler, the investment was starting to pay off by then as the team finished second in the constructors' standings in 2013, bringing ˆ74 million in from Ecclestone's coffers to cover roughly a third of the budget. With Malaysian oil giant Petronas alone kicking in upwards of another ˆ30 million per season as title sponsor (as of 2009 when it signed on), and untold millions more coming in from other partners, it looks like the actual cost to Daimler for securing both world titles and a winning reputation was actually more like hundred million or so.

Mercedes-Benz Concept IAA is a modern silver aero

While we English-speaking folk call it the Frankfurt Motor Show, our German friends call this week's bi-annual confab the Internationale Automobil-Ausstellung, or IAA. At first glance, then, you might think Mercedes-Benz named its Frankfurt concept, the Concept IAA, after the show it'd debut at. But, the Concept IAA isn't named for the show. It's actually an abbreviation for Intelligent Aerodynamic Automobile, and it's very aerodynamic indeed. This four-door coupe can transform, while moving, from its sedan-like design mode to an ultra-sleek, gas-powered fish of a car. This aerodynamic mode has a drag coefficent of just 0.19. That's sleeker than a Tesla Model S, and it ties the rating of the General Motors EV1 electric car. In fact, it's very nearly as aerodynamic as the Volkswagen XL1. The IAA can transform automatically at 80 kilometers per hour (about 50 miles per hour) or via the press of a button. When it enters an aerodynamic mode, eight segments at the back of the car extend out, adding over 15 inches to the overall vehicle length, effectively extending its already tear-dropped-shaped tail. And that's just the most visible aero aid. At the front of the car, flaps in the bumper extend out nearly an inch, while there's a smaller extender in the back bumper. These serve to keep air away from the wheel arches, where turbulence can become an issue. Of course, Mercedes has thought of this, too, fitting "Active Rims" that "alter their cupping from 55 mm to zero," whatever that means. There's even an active aero aid inside the front bumper, where a louver extends backward by 2.3 inches to smooth out the air traveling underneath the car. Outside of its super-slippery mode, the IAA is a relatively handsome four-door coupe, featuring the kind of plunging roofline that wouldn't look out of place on the company's pioneering CLS-Class. The interior is certainly worthy of the CLS, too. It's home to gorgeous white leather and touch-based controls, and in general, looks very luxurious. Mercedes' dogged pursuit of aerodynamics does not mean that the Concept IAA is some gutless ecomobile. Under the skin is a gas-powered, plug-in hybrid system that produces up to 279 horsepower and allows the sleek sedan to hit 155 mph. Its all-electric range is based, of course, on what mode its body is in. It's most impressive in aero mode, where it will cover 41 miles on a single charge. Switch over to design mode, and that figure drops slightly to 38.5 miles.

Mercedes-Benz A45 AMG shows up to fight the hottest hatches [w/videos]

Fun coincidence. On the same day that Audi announces the unveiling of its new S3 Sportback at the Geneva Motor Show, Mercedes-Benz steals the spotlight by confirming that the all-new A45 AMG will also receive its official debut early next month. Starting life as the entry-level A-Class hatchback, the A45 AMG gets the full AMG treatment, which includes numerous performance, handling and styling upgrades.
Under the hood sits an AMG-tuned 2.0-liter turbocharged I4 breathing through a sport exhaust system helping the five-door produce 360 horsepower and 332 pound-feet of torque. This engine is paired to a seven-speed AMG dual-clutch transmission and power is sent to the ground using 4Matic all-wheel drive. Mercedes-Benz says that the A45 AMG will be able to accelerate from 0-60 miles per hour in under 4.5 seconds and it will have a top speed of 155 mph; in the land of hot hatches, it doesn't get much hotter than that. For added performance and handling, AMG has retuned the A-Class' suspension and steering systems and equipped The A45 with a three-stage stability control system that is specific to this car.
Surprisingly, the exterior styling of the A-Class was already sporty enough that the new model doesn't receive too many changes to become the A45 AMG. The biggest alterations include black accents to the chin spoiler, rocker panels and mirror caps, black wheels with red-painted brake calipers and rectangular dual exhaust outlets. Inside, it doesn't take a trained eye to spot the differences. The flat-bottomed sport steering wheel and the numerous red accents throughout the cabin (including the seatbelts!) really help to make this AMG interior stand out; front passengers will also get sport bucket seats that appear to be more than supportive enough for even the most spirited driving conditions.