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European automakers gear up for Brazilian production

Brazil is the place to be, apparently. Toyota has been investing in the South American country, as has BMW, which announced a $261 million investment in October 2012, on the heels of an Audi factory announcement in San José Chiapa. The high-end immigration is only set to continue, as Mercedes-Benz and Jaguar-Land Rover have both announced plans to set up manufacturing operations there.
Mercedes is the big news here, as its new facility will see the German manufacturer invest 170-million euros for production of its next-generation C-Class and upcoming GLA-Class. "Brazil is an important future market. With our local production we accept the challenge and take on the competition," noted Andreas Renschler, Management Board member for Production and Procurement at Mercedes-Benz Cars and Mercedes-Benz Vans. Production is expected to begin by 2016.
Jaguar-Land Rover, meanwhile, isn't so concrete in its plans. The news of its investment in South America comes from a job posting for a plant quality manager in Brazil that was picked up by the UK's AutoCar. "Portuguese language skills will be definite advantage" for interested candidates, according to the job listing. The want ad follows on the heels of remarks by Jaguar Land Rover's Dr. Ralph Speth, who said there are "very intensive discussions" with Brazil's government. Unlike Mercedes, there's no mention of which vehicles will be produced in South America, although AutoCar thinks the Freelander, sold in the US as the LR2, is a leading contender.

Daimler, Geely mull China as production hub for hybrid powertrains

FRANKFURT — Daimler and Geely on Friday said China could emerge as a manufacturing and export hub for hybrid powertrains jointly developed for Volvo and Mercedes-Benz cars. Earlier this week, Daimler said it would cooperate with China's Geely to build next-generation combustion engines for use in hybrid vehicles. The engines will be produced in China as well as in Europe, and Geely and Daimler will cooperate in engineering, sourcing and production, the companies said in a joint press release. "The export of the engine from China is considered to be an option," the release further said. Mercedes-Benz aims for more than half of its passenger car sales to be comprised of plug-in hybrids or purely electric vehicles by 2030. Geely is ChinaÂ’s most internationally known automaker. It owns Volvo Cars and Lotus, almost half of Proton and 9.7% of Daimler. Through wholly owned company Polestar, it builds low-volume Polestar 1 hybrid performance cars in the western city of Chengdu and Polestar 2 volume sedans in Taizhou in the east. "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. 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. An Conghui, President of Geely Holding Group, President and CEO of Geely Auto Group said: “This project reflects the need for economies of scale and targeted research and development investment in clean and highly efficient powertrains and hybrid drive systems and their applications." Geely also plans to build a plant with annual manufacturing capacity of 30,000 premium EVs in the western city of Chongqing, run by a wholly owned, newly registered company, according to documents on its website. Geely and Polestar declined to comment. The plan comes as foreign automakers including BMW AG and Tesla expand EV production in the worldÂ’s biggest market, sourcing major EV components such as batteries locally and often even exporting a portion of the vehicles it builds.   Auto News Earnings/Financials Green Plants/Manufacturing Mercedes-Benz Volvo Green Automakers Future Vehicles Hybrid

2015 Mercedes-Benz GLA250 4Matic Quick Spin [w/video]

Certain expectations come with the name "Mercedes-Benz." We picture cars with luxuriously appointed interiors, fashionable exteriors, Autobahn-worthy performance, and a ride that delivers an optimal balance between agility and outright comfort. Expectations, though, are no friend to the GLA250. This is a car that is deeply confused as to its purpose in life – can it be a proper Mercedes-Benz while still being a reasonably priced, subcompact crossover? After a week behind the wheel, we believe the two are mutually exclusive. Driving Notes The exterior styling is similar to the not-for-America A-Class hatchback, with the only major differences found on the rear end. That means that even with its flashy 19-inch AMG wheels and sport body styling – more aggressive front and rear fascias – the GLA is a stylish piece. We might even call it cute. Considering our 4Matic model's reasonable $34,225 starting price, the interior treatment is both attractive and uses mostly quality finishes. The matte Satin Light Brown Poplar wood ($325) covers a large portion of the dash, while the real metal found on the air conditioning vents is elegant and handsome. There is a lot of plastic in the cabin: It's soft on the dash, and switches to a piano-black finish in spots, but the center console and door finishers don't feel like they came from the Mercedes parts bin. In general, the GLA's cabin feels roughly equal to that of the Audi Q3 and BMW X1 – nice, but a step lower than what we've come to expect from Mercedes. The two-piece, leather-lined seats look great, but even with standard 14-way adjustability, they lack support. The bottom cushion is very flat, and doesn't support the legs. For this author, that's a recipe for near-constant back pain. That said, the chairs do look good, especially in the brown of this test car. The GLA250, like a few other models in the Mercedes range, uses a 2.0-liter, turbocharged four-cylinder, delivering a weak 208 horsepower. It makes up for that shortcoming with 258 pound-feet of torque from 1,250 rpm to 4,000 rpm. On paper, this sounds good, but in the real world, the 2.0T's power is tough to access. That's due more to the shortcomings of the seven-speed dual-clutch automatic than the engine itself. With three modes – Eco, Sport, and Manual – we thought we'd find at least one that could serve up precise downshifts.