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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aren't sure that BAIC would get any useful technology, noting that that last deal between the two gave BAIC the outdated E-Class platform, but none of Mercedes' headline tech.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.

Mercedes C-Class Cabriolet advances to prototype stage

Following up on last month's sighting of the Mercedes-Benz C-Class Coupe, we've got a pretty sizable update on the C-Class Cabriolet, after a prototype of the new droptop was spotted undergoing testing in Germany. A quick comparison with last year's spy photos shows that Mercedes has made a lot of progress, moving on to full-blown production prototypes with a minimal amount of camouflage. Really, though, we already knew what the C-Class Cab would look like – identical to a C-Class sedan below the beltline, although the tail will likely be a bit more sporting – these spy photos merely confirm that. Expect to see the production C-Class Cabriolet debut at (or more likely shortly before) the 2015 Frankfurt Motor Show, where it will appear alongside the next-generation C-Class Coupe. Check out the spy photos up top. Related Video:

Mercedes-AMG planning hybrid hypercar?

It used to be that, a few overlapping two-door models aside, Mercedes-Benz and Porsche didn't really compete with one another. That's how the two ended up collaborating on projects like the Mercedes 500 E that put it on the performance sedan map without fear of stepping on each other's toes. But Porsche has grown considerably since then, challenging its Stuttgart neighbor with four-door sedans and crossovers, as well as sports coupes and convertibles. Little wonder, then, that Mercedes has hit back at Porsche with the AMG GT, and there will be many more versions to follow in 911 style. But that may not be the final salvo the Silver Star marque launches at Zuffenhausen. According to the latest bit of speculation and deduction from our friends at Motor Trend, Mercedes-AMG may be planning a hybrid hypercar of its own to take on the Porsche 918 Spyder – not to mention the McLaren P1 and LaFerrari. Solid information is sparse at this point, but after speaking to AMG chief Tobias Moers, MT speculates that the new flagship will likely be mid-engined, with a boosted version of the company's 4.0-liter twin-turbo V8 kicking out between 650 and 700 horsepower, working with a pair of electric motors at the front to deliver tenacious through-the-road all-wheel traction and a combined output in the thousand-horsepower range. There is the possibility, though, that Mercedes could go after the latest hybrid hypercars with a flagship version of its just-launched AMG GT, packing a similar powertrain setup as the ultimate evolution of the breed. Other GT versions will likely soon include a GT3 racing model, a Black Series version and a roadster – following a similar path taken not only by the 911, but also by Benz's previous halo supercars like the SLR McLaren and SLS AMG.