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How tariffs in China could cause a meltdown in the American South
Sun, Aug 25 2019While BMW is clearly a German company, the crossovers that are exceedingly important to it are actually made in Spartanburg, South Carolina. And more than that, the Spartanburg plant (physically located in the town of Greer) is where the corporate know-how and capability for those vehicles is concentrated. These are the vehicles – specifically, the BMW X3, X4, X5, X6, X7 – that drove record growth for the company in 2018, according to BMW. But whatÂ’s most notable about BMW Group Plant Spartanburg, given current events, is that according to the U.S. Department of Commerce it was the largest automotive exporter by value for the fifth year running in 2018. ThatÂ’s worth emphasizing: largest automotive exporter by value. Not GM. Not Ford. BMW. And where might one assume that more than a few of those X vehicles are shipped to? China. Some 360 miles southwest of Spartanburg is Mercedes-Benz U.S. International, Inc., in in Tuscaloosa County, Alabama. It started building vehicles in 1997. Since then, Daimler AG has invested in excess of $5.5 billion in the facility. It manufactures the crossover now known as the GLE, formerly the ML-Class. It also makes the GLE coupe and GLS. Daimler describes the Tuscaloosa facility as “the traditional home of SUV production” for those vehicles. When it reported its global 2018 sales, Daimler noted that on a global basis SUVs account “for more than a third of all Mercedes-Benz sales.” According to the Chinese finance ministry, on December 15th the Chinese government will impose a 25% tariff on automobiles (and a 5% tariff on auto parts) from the U.S. Certainly this is going to have a direct effect on the sales of vehicles that are manufactured in the U.S. and exported to China. BMW and Mercedes are going to take it on the chin for the vehicles that they make in plants that they invested in so heavily in the U.S. Which could potentially mean that people in places like Greer, South Carolina, and Vance, Alabama, are going to find themselves in the crosshairs of the combatants. Soo too could Lincoln, which produces vehicles in places like Louisville, Kentucky (Navigator), Chicago, Illinois (Aviator) and Flat Rock, Michigan (Continental). Although the Tesla Gigafactory 3 is rapidly nearing completion in Shanghai, it is worth noting that vehicles built in Fremont, California, are being sold in China in numbers that donÂ’t make Musk unhappy.
Mercedes-Benz Concept IAA is a modern silver aero
Mon, Sep 14 2015While 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.
Daimler and Geely collaborate to develop 'a highly efficient modular engine'
Wed, Nov 18 2020BERLIN — German car maker Daimler said on Tuesday it will cooperate with China's Geely to build next-generation combustion engines for use in hybrid vehicles. Efforts to share development costs come as the growth potential for combustion engines faces the twin threat of the COVID-19 crisis and stricter fuel-efficiency and emission rules. "The companies plan to develop a highly efficient modular engine," a spokesman for Daimler said, adding that it would be used in hybrid drivetrains and manufactured in Europe and China. Geely declined to comment. The modular engine will be used in cars under different marques at Geely and Daimler, a person familiar with the matter said on condition of anonymity as the companies are still in the early stages of developing the engine. News of the alliance was a surprise to Daimler's works council at its factory in Untertuerkheim, which specializes in electric and gasoline powertrain assembly. "We are speechless. There was not even a discussion about potential alternative manufacturing locations," said Michael Haeberle, the works council chief for Untertuerkheim. "We have the ability to build four-cylinder engines in Untertuerkheim, but there were no talks about it." Daimler said German factories will be retooled gradually to add electric drivetrains production. Most of the next-generation combustion engines will be made in China, business daily Handelsblatt reported. The alliance with Geely, which owns a 9.69% stake in Stuttgart-based Daimler, means that parts of Daimler's existing partnership with Renault could be pared back. A Renault source told Reuters that the Daimler-Geely project does not mean an end of cooperation between Daimler and Renault. Citing Daimler sources, Handelsblatt said the Daimler-Geely pact would save the German carmaker a "triple-digit million sum" — implying an amount above 100 million euros ($119 million) and less than 1 billion euros. Green Mercedes-Benz Volvo Hybrid Daimler Geely
