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Smart brand will be built in China as a Daimler-Geely joint

FRANKFURT/BEIJING — Daimler will build its next generation of Smart electric cars in China through a joint venture with Geely, as a way to increase economies of scale in a market segment that is struggling to turn a profit. China's Geely built a stake of almost 10 percent in Daimler last year, saying it wanted to forge an alliance to develop electric and self-driving cars to better compete against new challengers such as Uber and Google. Daimler said on Thursday it would build the next generation of Smart-branded city cars at a purpose-built factory in China, and planned to share its expertise in manufacturing, engineering and design with Geely. The high cost of electric car batteries has made it hard for automakers to build affordable zero-emissions vehicles, leading several of them to strike alliances with Chinese partners. Daimler's German rival BMW recently unveiled plans to build electric Minis in China, where production costs are low and demand for small electric cars is rising. Daimler and Geely did not disclose financial terms of their deal. The details of the joint venture will be finalized by the end of 2019, they said in a joint press release. Daimler currently develops and builds Smart cars with Renault at factories in France and Slovenia. The Daimler factory in Hambach, France, will be retooled to build Mercedes-Benz cars. Geely has been expanding rapidly through mergers and acquisitions since 2010, when it acquired Swedish carmaker Volvo from Ford. Last year, Daimler and Geely set up a ride-hailing joint venture in China. Daimler's Chief Executive Dieter Zetsche said last month the German carmaker was in talks to deepen its alliance with Geely after the Chinese's group's chairman Li Shufu bought a 9.69 percent stake in Daimler in 2018.

Daimler and Volvo could jointly develop internal combustion engines

BERLIN — Luxury German carmaker Daimler and Volvo, owned by China's Geely, are considering cooperating to cut the costs of developing combustion engines, a magazine reported on Sunday, citing unnamed company sources. The Automobilwoche weekly cited a Volvo manager as saying there were initial talks with Daimler, but no concrete plans, while a company spokesman said it was too early to talk about firm projects, although it was not excluding anybody. A Daimler spokesman said the company's cooperation with Geely, which owns a 10% stake in the German carmaker, was developing in a positive way, but declined to comment further. Global tariffs, accelerated by a trade war between China and the United States, as well as higher investment requirements for electric and autonomous vehicles, are forcing carmakers to seek new ways to cut and share costs. In October, Volvo said it would merge its engine development and manufacturing assets with those of Geely, creating a division to supply in-house brands and also potentially others with next-generation combustion and hybrid engines. Automobilwoche said this new division would start operating by the end of March, which could be a possible starting point for cooperation with Daimler, while a further step could be a partnership to develop electric power trains. Geely and Daimler have said they plan to build the next generation of Smart electric cars in China through a joint venture and the two companies are also cooperating on a premium ride-hailing service in China. Geely bought Volvo Cars in 2010 from Ford, allowing the Swedish brand to operate on an arms-length basis. But in recent years, it has deepened cooperation between the two brands. Volvo already supplies engines to some Geely-branded vehicles, sharing technology through Geely's Lynk brand. Both companies share and develop common vehicle platforms. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

2016 Mercedes-Benz GLC250 First Drive [w/video]

There's nothing wrong with the Mercedes-Benz GLK other than old age, having first sold here in 2009. But with creased, off-road themed styling, a naturally aspirated V6, and a smallish interior, it's out of step with the company's growing line of sport utility vehicles. Even its name is a harsh-sounding outlier. Enter the 2016 GLC. Mercedes calls this model the second generation of the GLK, but it's closer to a total reboot. The new look follows the smooth design of contemporary Benzes. The spotlight engine is now a spunky turbocharged four cylinder, and yes, the GLC is bigger inside and out. As for the name change, that's part of the latest badge realignment, and the "C" indicates the GLC's position as the crossover counterpart to the C-Class sedan. Now firmly integrated into the Mercedes SUV family, the GLC takes a seat at the table between the entry-level GLA and the larger GLE. The GLC's fresh appearance has all of the tenets of modern Mercedes design. We've come to the Alsace region of France to sample this familiar yet evolved utility vehicle. Driving along route A35, we're immediately struck by the turbo four-cylinder's prowess. It's strong from launches when we mash the gas, returns a subtle but pleasing exhaust note, and it's more than capable of picking off slower moving traffic as we dash through the French countryside. We're driving the European-spec GLC250 model, which has the same 2.0-liter engine Americans will get in the GLC300, though the Euro model has 30 fewer horsepower. The US version will be rated at 241 hp and 273 pound feet of torque, the same output as the C300 sedan. The turbo has big shoes to fill, as it gives up 61 hp to the 302-hp V6 used in the GLK. Mercedes is banking consumers won't miss this raw power, as the GLC's inline-four offers the same amount of torque as the GLK's V6, but much sooner in the rev band. Even in its detuned European state, the I4 demonstrates the kind of urgency that Americans prefer for their grocery-getting people haulers. It's paired with a nine-speed automatic transmission, upgraded from the GLK's seven-speed. There are paddle shifters, though most Americans won't have reason to use them. Sometimes we grab them and lay on the throttle just for fun, and the GLC responds with bursts of speed. Even in its detuned European state, the I4 demonstrates the kind of urgency that Americans prefer for their grocery-getting people haulers.