Auto blog

VW gets help from Daimler to deal with VW scandal

Volkswagen has hired Christine Hohmann-Dennhardt, a compliance officer, away from Daimler. Normally, this wouldn't be particularly big news. The reason you might care is summed up rather succinctly by Ferdinand Dudenhoeffer, director of the Center for Automotive Research at the University of Duisburg-Essen, who said that Hohmann-Dennhardt is being tasked with helping the entire German automobile industry "clean up the collateral damage from the diesel deceit." Hohmann-Dennhardt had to be released early from her contract with Daimler in order to take on this difficult role with an inter-country rival. VW Chairman Hans Dieter Poetsch thanked "Daimler AG for agreeing to our request to the early termination of Dr. Hohmann-Dennhardt's contract." What makes this move even more interesting is that Daimler and Volkswagen have had a terse relationship in recent years due to the poaching of important employees from one side to the other. According to Bloomberg, Hohmann-Dennhardt's contract with Daimler had been secured through February of 2017, but with her early release, she will start her new role on VW's board of management in January of 2016. Daimler, for its part, released a statement suggesting the decision was made "in the interests of the good corporate governance of the German automotive industry." Prior to her employment at Daimler, Hohmann-Dennhardt served for 11 years as a judge. Reading between the lines, it seems VW's massive corporate scandal has rocked the German auto industry to its core. Enough so, in fact, that Daimler would be willing to let go of a highly talented and well-respected executive – the first woman ever appointed to the German automaker's board – who had served since there since 2011. Feel free to read through VW's entire statement, below. Related Video: Dr. Christine Hohmann-Dennhardt to move to Volkswagen AG in 2016 as Board Member for Integrity and Legal Affairs Daimler AG agrees to move of Board Member for Integrity and Legal Affairs to Volkswagen AG The Chairman of the Supervisory Board of Volkswagen AG, Hans Dieter Potsch, has requested the Chairman of the Supervisory Board of Daimler AG, Dr. Manfred Bischoff, to agree to the early termination of the contract with Dr. Christine Hohmann-Dennhardt, Member of the Board of Management of Daimler AG for Integrity and Legal Affairs, which runs until February 28, 2017. She is to join the Volkswagen Group as of January 1, 2016 as the Board Member for Integrity and Legal Affairs.

2016 Mercedes-Benz GLC250 Quick Spin

The 2016 Mercedes-Benz GLC is an all-new luxury crossover that replaces Benz's compact GLK. We're driving it right now, and will have a full first drive soon. But before this, we were granted some early access on a drive from Lithuania to Latvia – just enough to form some initial impressions. As part of Mercedes' expansion with new models (and old models taking on new names) the GLC will no longer be the entry-level CUV for Mercedes – that title has been assumed by the GLA crossover. The GLC moves up not only in the hierarchical range, but grows 4.6 inches in the wheelbase, and is more roomy overall. Most evident, the GLC gets completely new styling, something that is immediately clear upon first glance. Mercedes says the 2016 GLC represents the future design direction for all its SUVs. Continuing the "Sensual Purity" design language of the new S-Class and C-Class, our Euro-spec GLC prototype is curvier, cleaner, and more modern than the more rugged-looking GLK. Mercedes says the US will have standard front and rear bumpers optimized for off-road use, with a 28-degree approach and departure angles for all variants. Despite boasting four doors, the GLC has a coupe-like silhouette. Our model's LED headlights, chrome-finished dual exhaust pipes, and large wheels (up to 20-inches) add to this sporty aesthetic. The real story however, is on the inside, where the GLC mimics the striking interior of the C-Class. Based on our model's open-pore wood, flowing center console, and brushed metallic and piano-black finishes the GLC boasts the nicest interior in the class. With a few short hours spent evaluating Benz's new ute – and evading endless Baltic speed traps – we were able to get some immediate impressions. There's a lot to like here. Driving Notes The 2.0-liter four-cylinder engine is rated at 241 horsepower and 273 pound-feet of torque. But what the driver actually experiences will depend on the five different driving modes. A simple toggle switch on the center console by the MMI touchpad and scrollwheel moves you through the various modes: Eco, Comfort, Sport, Sport Plus, and Individual. Each mode represents a marked difference in steering feel and throttle response. Eco and Comfort modes are fine for driving around town, but lack any semblance of sportiness. Sport and Sport Plus improve feedback, but the GLC never feels quick in any mode. It does feel nimble, and the drive is more car-like than SUV, which bodes well for the majority of US customers.

Zetsche's CEO tenure extended through 2016 at Daimler

There appear to be two takes on Daimler CEO Dieter Zetsche having his contract extended for three more years, to 2016. A report in The Detroit News quotes the chairman of Daimler's supervisory board, Manfred Bischoff, talking up the stability at the top, "With today's extensions of the contracts of Dieter Zetsche and Thomas Weber, we are maintaining the important continuity at the top executive level." Bischoff also stated that that Zetsche has a plan to "further enhance Daimler's overall performance."
Over at Reuters, though, the three-year extension was seen as a lack of complete confidence in Zetsche's plans, since his contract was supposedly meant to be extended by five years. A spokesman said the board decided to extend executive contracts by only three years if the person was 60 or would turn 60 during the contract, but that was news to observers. Zetsche wants to make Mercedes-Benz the top selling luxury manufacturer globally by 2020, but has fallen to third place behind Audi and BMW. It hasn't held the top spot 2005, and investors judged it valued at half that of BMW at the end of 2012 once Daimler's truck business was subtracted.
Analysts cites the fact that Daimler stock hasn't bested its rivals but twice in twelve years, and that the company revised its profit target downward last year by nearly one billion euros, warning of stagnant earnings this year and will miss its original margin target for 2013.