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Audi and Mercedes both outsell BMW in January

There won't be any celebrations in Munich this month, as BMW was outsold by arch-nemeses Audi and Mercedes-Benz. The Bavarian company finished behind Audi in January, which took the top spot for the first time since June of last year, Bloomberg reports. Ingolstadt rode high on a 10-percent bump in sales, while Mercedes saw a larger 14 percent increase. BMW, meanwhile, only saw a modest 6.3-percent sales increase last month, thanks in large part to its struggles in China. The company's sales there increased at about half the rate of its chief competitors, with a 7.9-percent jump to Mercedes and Audi's roughly 15-percent increases. Perhaps more worrying for BMW, though, is that this could become something of a trend for the company. According to Bloomberg, issues with Chinese dealers who cancelled orders over sales targets and bonuses combined with what the publication calls aging models, could spell bad news for the German marque. "This looks like a pretty significant decline in growth compared to Mercedes and Audi," Bankhaus Metzler analyst Juergen Pieper told Bloomberg. "I think this will continue during the next few months." News Source: BloombergImage Credit: Matthias Schrader / AP Earnings/Financials Audi BMW Mercedes-Benz

2016 Mercedes-Benz G550 Quick Spin [w/video]

If there ever was an automotive embodiment of the phrase, "If it ain't broke, don't fix it," that'd be the Mercedes-Benz G-Class. The G-Wagen has carried on largely unchanged since the 1970s, with only small updates throughout the decades. Today, it's the halo vehicle for Mercedes' entire SUV range, and while it's more luxurious and efficient than ever, it'll still climb a mountain if asked. "Our legend has a bright future," says Dr. Gunnar Guthenke, Mercedes' G-Class boss. And for now, that means the addition of a new base engine for the 2016 model year, as well as other small updates. The powerplant in question is Merc's new twin-turbocharged, 4.0-liter V8 – you know, the one from the AMG GT – tuned to produce 416 horsepower and 450 pound-feet of torque in the G550. Compared to the outgoing, naturally aspirated, 5.5-liter V8, the new engine is stronger by 34 hp and 59 lb-ft. And while official fuel economy numbers are still pending, Mercedes says the G550 is 17-percent more fuel efficient with this smaller, more powerful engine. Win-win. As for the rest of the G-Class, the 2016 model year changes are limited to a new front bumper with more pronounced air intakes (and the removal of the cow catcher bars), wider wheel arches, a few new colors (including some seriously bright hues), and a redesigned instrument cluster. Those are all well and good, but the star of the show is that 4.0-liter V8. It's a honey in the AMG GT, and it's a perfect fit under the hood of the G550. Driving Notes I'm kicking myself for not taking video of the exhaust note, because holy crap, the G550 sounds amazing. Mercedes' engineers should be applauded for the exhaust tuning on the updated G-Class. The result is a low, burbly, throaty V8 noise that comes bellowing out the SUV's side pipes. The extra 59 lb-ft of torque is really noticeable off the line. And like in the AMG GT and C63, the 4.0-liter V8 provides linear power delivery with no noticeable turbo lag. Mercedes says the 2016 G550 will do 0-60 in 5.7 seconds, compared to 6.0 seconds in the 2015 model. That's right, it's a 5,724-pound, box-shaped SUV that'll run nearly neck and neck with a base Porsche Boxster. In terms of on-road refinement, the G-Class is the same as it ever was. There's an optional, adjustable suspension for 2016, with Comfort and Sport modes, but the difference between the two settings is negligible.

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.