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Renault and Daimler discuss potential future partnership

George Skentzos — Wed, 17 Mar 2010 13:28:29 +0000

Renault and Daimler, the makers of Mercedes-Benz vehicles, are reportedly in talks about an equity tie-up which could form part of a possible long-term partnership.

The move would see both automaker benefit by cutting costs, building scale and spreading the load of heavy investments in new technologies, such as hybrid and electric vehicles, over large numbers of cars.

A potential partnership between Renault and Daimler – which would also include Renault’s Japanese alliance partner, Nissan – has not been confirmed by Renault CEO Carlos Ghosn who said only that he was open to equity exchanges.

“We are open to exchange of shares … but exchange of shares is not an end by itself … it is a way to solidify co-operation between partners.” said Mr Ghosn.

Although it seems Daimler is not quite as optimistic about the benefit of a merger, with Daimler’s CEO Dieter Zetsche reluctant to commit to a new pact after a costly venture with Chrysler.

“It would not be particularly logical. Joining the alliance means organizing joint programs, making long-term plans together … in my view it’s not on the agenda.” said Societe Generale analyst Philippe Barrier.

Despite the lack of any firm agreements or decisions, both Renault’s and Daimler’s shares were up 2.3 per cent at the close on Tuesday.

Daimler set to sell stake in Tata Motors

Matt Brogan — Tue, 09 Mar 2010 23:02:12 +0000

Reports from India this morning say Germany’s Daimler is set to sell its long-time stake in Tata Motors.

Daimler, who own a 5.34 per cent stake in the Indian company, gave no comment on a its decision to sell the shares. Estimates put Daimler’s return on the sale at US$429 million (AUD$470 million).

The news comes as Daimler forms a number of new automotive partnerships, recently purchasing shares in both US firm Tesla Motors and China’s BYD.

Despite Daimler’s exit from Tata, the Indian manufacturer continues to perform above expectations. Tata’s stock price has increased 19 per cent since late February, and saw an increase of 0.18 per cent on Monday.

Daimler seeks new small car partner for 2010

Matt Brogan — Sun, 03 Jan 2010 19:13:37 +0000

Speaking to German newspaper Handelsblatt, Daimler CEO Mr Dieter Zetsche, has hinted that the firm is in talks with several firms to secure a partnership that will help build its next generation of compact cars.

One of these firms is thought to be French car manufacturer Renault, with the new partnership rumoured to form from as early as mid-2010.

Daimler’s luxury car brand, Mercedes-Benz, plans to launch four new compact cars to replace the current A- and B-Class models when they reach the end of their product cycles towards the end of next year.

Both Daimler and Renault have previously admitted to be in talks over a new family of small cars, with Daimler looking for a new range of engines for its models and Renault seeking a low-cost platform for its cars.

2012 smart fortwo spy pics

Matt Brogan — Wed, 25 Nov 2009 21:28:34 +0000

smart’s next-generation fortwo city car has been spied in mule form hot-climate testing in France this week.

Rumour has it the new car will be available in a long-wheelbase version that would mean the car could seat four people – one of the minuscule car’s major limitations thus far.

While the standard smart would remain a pure two seater, the smart fortwo+2 would have rear doors, making access into the tiny rear at least somewhat easier. An additional model would make the smart range a bit more competitive with base-level city cars like the Chevy Spark, and more premium vehicles, like the Audi A1 and the rumoured BMW Isetta.

Both new smarts will stay as a rear-wheel drive, keeping the engine below the floor of the boot. The added length for the backseat in the four seater will come from an elongated wheelbase.

Rumour also says the cars will be available with several engine options, a passive hybrid, and perhaps even a full electric motor when sales commence in early 2012.

Smart fortwo ‘electric drive’ production begins, public sales by 2012

Matt Brogan — Tue, 24 Nov 2009 20:54:02 +0000

Daimler has this week commenced production of its smart fortwo ‘electric drive’ model at the smart plant in Hambach, France.

Initially the fortwo electric drive models will be provided to 1,000 selected customers participating in various mobility projects in major cities across Europe and the US. The idea is to gather broad feedback on how viable electric driving under everyday conditions actually is.

“With the start of the series production of the smart fortwo electric drive, the Hambach plant enters a new era – at the same time, the smart fortwo emphasises its pioneering role on the way to individual mobility with local zero-emissions in cities and urban areas,” said Mr Marc Langenbrinck, Managing Director of the smart brand. “Its innovative battery-electric drive makes the smart fortwo electric drive the ideal vehicle for the city: it combines responsibility to the environment with driving fun and joie de vivre in a virtually perfect manner.”

The second-generation smart fortwo electric drive is now equipped with the most modern of lithium-ion-battery.

Smart plans to offer the fortwo electric drive to the general public from 2012.

German luxury marques boom in China

Matt Brogan — Thu, 08 Oct 2009 00:56:59 +0000

The booming Chinese car market continues to be one of the few bright spots for German luxury manufacturers, which have drawn few benefits from scrapping programs in the UK, US and Europe.

Mercedes-Benz, Audi and BMW all posted year-on-year volume gains of more than 35 per cent in the China last month in stark contrast to declines felt elsewhere.

Mercedes-Benz new E-class sedan and ever-popular S-Class models helped grow the brand’s volume in China grew by 56 per cent to about 6,800 vehicles last month.

Sales of its SUV models jumped 73 per cent to 1,200 vehicles helping to boost the brand’s overall volumes in the first nine months by 41 per cent to 45,400 vehicles.

“Mercedes-Benz is the fastest-growing luxury brand in China, both in September and in the three quarters since January,” a spokeswoman for Daimler AG said.

BMW has also experienced growth in China with sales up by 35 per cent to 7,628 vehicles in the month, and by 32 per cent to 59,460 for the first nine months.

Audi gained 37 per cent last month to more than 15,000 vehicles — the first time it breached that level. That helped it crack the 100,000-mark through September, increasing volumes by a fifth so far this year.

Audi is far more heavily dependent on China for its performance than Mercedes-Benz or BMW thanks to parent Volkswagen’s strong presence in the market over the past two decades.

A few days ago, Audi and its Chinese joint venture partner began production of the Q5 SUV in Changchun, where it already builds the long-wheelbase versions of the A4 and A6 sedans.

With Reuters

Chrysler sues former parent Daimler

Matt Brogan — Tue, 25 Aug 2009 22:26:22 +0000

According to a report published in Autonews today, Chrysler has accused former parent Daimler of refusing to honour contracts to supply components thus threatening production at some Chrysler factories, a claim Daimler strongly rejects.

The allegations are contained in a lawsuit filed last Friday in US Bankruptcy Court, New York.

“Daimler’s conduct threatens to shut down Chrysler Group’s manufacture of key product lines,” said Chrysler spokesman Gualberto Ranieri.

The dispute stems from Daimler’s claim that Chrysler owes it 55 million euros (US$78.7 million) to compensate for reduced volume for the 2.2-litre diesel engine Daimler has supplied to Chrysler.

The diesel is used for European sales of such models as the PT Cruiser. Daimler says it owed this amount because Chrysler didn’t buy as many of the engines as it had said it would.

“We believe these claims are without merit, and we will defend ourselves vigorously,” said Daimler spokeswoman Julia Engelhardt.

In its complaint, Chrysler says “the volume shortfall payment issue was resolved in an April 17, 2009, pre-petition agreement that settled a number of disputes between Daimler and the old Chrysler.”

The complaint says Daimler is refusing to supply steering columns and torque converters in order to pressure Chrysler to make the volume-shortfall payment.

“Chrysler Group believes that Daimler’s misconduct is designed to extort a settlement by wrongfully withholding crucial parts that Daimler has contractually committed to supply to Chrysler Group,” Mr Ranieri said.

He also said that Grand Cherokee production at the Jefferson North assembly plant in Detroit is threatened, as well as production of the Dodge Charger and Challenger and Chrysler 300C in Brampton, Ontario.

Mr Ranieri called Daimler’s action a “direct violation” of the April 17 settlement agreement later approved by the Bankruptcy Court.

Chrysler filed for Chapter 11 bankruptcy on April 30 and emerged under the control of Italy’s Fiat on June 10.

Renault, Mercedes-Benz discuss new Smart model

Matt Brogan — Thu, 06 Aug 2009 07:19:31 +0000

Mercedes-Benz and Renault are said to be collaborating on a deal that is aimed at bolstering the German brand’s underdeveloped Smart division with a new four-seat model.

The new Smart, due in 2013, will replace the ForFour (as pictured) that was killed off in 2006 due to poor sales and is planned to sit on a lightly modified version of the Renault Twingo’s underpinnings.

The new Smart will also feature a dedicated (plug-in) electric version to be based on Renault partner Nissan’s new Leaf EV.

It is expected the announcement will be made official at the upcoming Frankfurt auto show, where Smart has previously stated it will reveal further details about the future of the Smart brand.

So far Smart have hinted at three new models by the middle of the next decade including a radical three-seater sports car.

At this early stage, it is not known whether the deal between Mercedes-Benz and Renault will extend to engines and gearboxes, although German media reports have suggested that the two are looking at deep integration between the new ForFour and the Twingo in a move aimed at extracting the sort of economies of scale achieved by rival carmakers PSA/Peugeot-Citroen and Toyota with their similarly sized C1, 106 and Aygo.

This would suggest further collaboration on small-capacity petrol and diesel units, including possibly a new generation of highly efficient three-cylinder engines already under development at Mercedes-Benz.

World’s largest smart car gathering

Matt Brogan — Wed, 29 Jul 2009 02:18:00 +0000

A massive convoy, music concerts, creative competitions, technical discussions, fun and joy of life – yes folks such is the largest gathering of smart cars and enthusiasts in the world, and it all takes place at an old airport site in Austria from 21 – 23 August.

Over three days “Smart Times” attendees can look forward to a varied programme with events aimed at celebrating the 11 year success of the smart car.

Several thousand smart enthusiasts from all over Europe, some of whom have customised their vehicles in a creative and often unusual way, are expected to attend.

For more information on Smart Times, click here.

Daimler, BMW set to adandon hybrid JV – report

Matt Brogan — Wed, 15 Jul 2009 05:28:38 +0000

A report published in Germany’s Auto Motor und Sport says that due to current harsh economic times BMW and Daimler may part ways on their hybrid joint venture.

The pair had been collaborating on hybrid systems for some years now but by all accounts the deal is off as BMW chases “a better offer elsewhere”.

And although BMW may be looking for an exit, it has been suggested Daimler wants to keep the partnership alive. So far several vehicles have benefited from the partnership including the S400 Hybrid and ML450 Hybrid.

The report also indicates that BMW may be put off by Daimler’s new-found commitment to pure electric vehicles, and although BMW has its fair share of EVs planned, Daimler is reportedly keen on bypassing hybrid vehicles to move directly to electric power – a move that would leave BMW with the bulk of the hybrid development responsibilities and costs.

There’s no word yet on who BMW’s new hybrid partner may be, but rest assured, we’ll keep you posted.

Toyota considers Daimler partnership – report

Matt Brogan — Thu, 02 Jul 2009 01:41:38 +0000

A report from German paper Auto Motor und Sport says Toyota is considering a partnership with European heavy-weight Daimler.

After Toyota’s recent collaboration with Aston Martin on a small car project, the idea may not be as silly as it sounds.

The alliance could see Toyota produce its own versions of Mercedes-Benz’s A- and B- Class vehicles (using its own MC platform), and maybe even stretch things so far as to collaborate on models including the Lexus LS and Mercedes-Benz S-Class.

But the report has been dismissed by a European Toyota representative who said: “It’s part of our normal business practice that we regularly talk to other carmakers but there are no specific projects planned at the moment.”

Were the partnership to come to fruition Toyota could step up its presence in the European marketplace, especially where Lexus is concerned.

Lexus back on top in quality survey

David Twomey — Mon, 22 Jun 2009 23:40:51 +0000

Lexus has reclaimed the top spot in JD Power and Associates’ annual ranking of initial quality, while the Ford, Chevrolet and Toyota brands ranked virtually even in the benchmark survey.

Porsche slipped to second after holding the title for three years in the market research firm’s Initial Quality Study, released today.

Ford improved to 102 reported problems per 100 vehicles and Chevrolet to 103, just behind Toyota’s sixth place score of 101.

That put the three top-selling brands in the United States in the same league when it comes to complaints during the first 90 days of ownership.

“There is no statistical difference between a 101 and a 102 or, for that matter, between a 101 and a 103,” said David Sargent, JD Power’s vice president of automotive research, in a presentation to the Automotive Press Association.

Overall industry quality improved to its best level in the study’s 23 years, and domestic brands continued to close the gap between their performance and the industry average.

That average was 108 reported problems per 100 vehicles, down from 118 in 2008. Owners of US domestic brands recorded an average of 112 problems per 100 vehicles.

A year earlier, the US domestics had 124 reported problems, or six more than the average.

Benz reveals more fuel efficient C-Class

David Twomey — Sun, 07 Jun 2009 23:56:40 +0000

Mercedes-Benz has revealed three new fuel efficient engines for its C-Class sedan and Estate, although as they are BlueEFFICIENCY engines its not clear when we will see them in Australia.

Mercedes-Benz says the engines raise performance and driving enjoyment to a new level, while demonstrating exemplary economy and environmental compatibility.

The new engines impress with a low fuel consumption, and therefore exemplary environmental compatibility, while delivering a high output for outstanding driving pleasure.

The new C220 CDI BlueEFFICIENCY sedan, the most efficient C-Class ever, generates 125kW and 400Nm from a displacement of 2143 cubic centimetres.

This accelerates the saloon from standstill to 100km/h in 8.4 seconds, yet the combined fuel consumption is only 4.8 litres of diesel per 100 kilometres, coupled with a CO2 emission of 127g/km – the best figure in this category.

The C250 CDI, with the same displacement, produces 150kW and 500Nm with a fuel consumption of 5.1L/100km, coupled with a CO2 figure of 134g/km and a 0-100km/h figure of 7.0secs.

The newly developed four-cylinder in the C 250 CGI BlueEFFICIENCY also uses direct injection.

It achieves 150kW and offers 310Nm, while needing 7.4 seconds for the sprint from zero to 100km/h with the new petrol engine.

The combined consumption amounts to 7.2L/100km, and CO2 emissions are 168g/km.

The new model variants of the Mercedes-Benz C-Class are available as both sedan and estate models in overseas markets.

BMW concerned about deeper ties with Daimler

Matt Brogan — Wed, 13 May 2009 06:05:02 +0000

BMW’s CEO Norbert Reithofer says he is concerned that making compact vehicles jointly with rival Mercedes-Benz of Daimler, or merging their financial services operations, could be dangerous.

Mr Reithofer went on to say that no cost savings could possibly be great enough to warrant ruining the core of a brand.

“There are clear limits. The BMW brand, which one study has valued at $24 billion, must not be diluted or the brand identity damaged,” Mr Reithofer said.

The comments come one week after Daimler CEO Dieter Zetsche pushed for a broader alliance with BMW saying there were in principle only a few areas where a cooperation was out of the question.

BMW last year examined the possibility of building the next-generation Mini on an Alfa Romeo platform but scrapped the idea after concluding that the outcome would not look or drive enough like a Mini to be worth the risk.

Mr Reithofer nevertheless said that BMW continued talks with Daimler to see where they could cooperate for the sake of scale and added that he would be willing to strengthen ties with its French engine partner, PSA/Peugeot-Citroen.

“When the new Peugeot chief is in office, we will also discuss whether one can expand the existing cooperation,” Mr Reithofer said.

The Quandt family that controls nearly a majority of BMW is said to be keen not to see its influence diminish at the company it rescued decades ago from a planned takeover by Daimler-Benz.

Source: Reuters.

Final 24 hours for Chrysler; unions agree deal

David Twomey — Thu, 30 Apr 2009 04:54:18 +0000

With less than 24 hours to go US carmaker Chrysler is rushing to seal a deal with Italy’s Fiat and its remaining creditors, to avoid having to file for bankruptcy under US Chapter 11 protection laws.

At the same time the powerful United Auto Workers union has voted overwhelmingly to accept a deal that will make its health fund the major shareholder in any Chrysler-Fiat alliance.

The UAW will effectively control 55 per cent of the shareholding in the Chrysler-Fiat alliance as part of a deal to reorganise half the US$10.6 billion obligation that the carmaker owes a retiree health care trust that the union will administer.

UAW President Ron Gettelfinger said in a statement, “Our members have responded by accepting an agreement that is painful for our active and retired workers, but which helps preserve US manufacturing jobs and gives Chrysler a chance to survive.”

“Today’s vote enables us to continue our work to meet the conditions laid out by the US Treasury Department,” Chrysler President Tom LaSorda said in a prepared statement.

Meanwhile, Reuters newsagency said Chrysler was rushing to clinch deals with Fiat SpA and a fractious group of lenders in a last-ditch effort to avoid bankruptcy as the final day began of a government-imposed restructuring deadline.

US President Barack Obama said concessions by Chrysler’s unions and its major bank lenders had made him more hopeful than he had been just a month ago that the struggling automaker could be made viable.

But he added that it was still not clear if Chrysler would need to seek bankruptcy protection to cement concessions from its lenders and move ahead with a planned alliance with Fiat.

“The details have not yet been finalised so I don’t want to jump the gun, but I’m feeling more optimistic than I was about the possibilities about that getting done,” Mr Obama said in a news conference.

The White House has set a series of aggressive targets for Chrysler in order to justify another US$6 billion in investment on top of the US$4 billion in emergency loans that the government has extended since the start of the year.

The number three US carmaker has won cost-cutting concessions from its unions in the United States and Canada and is on the brink of closing its deal with Fiat, a person involved in those negotiations told Reuters.

That leaves the focus on ongoing debt restructuring talks spearheaded by the Obama administration’s automotive task force and former investment banker Steve Rattner.

An Obama administration official said Chrysler talks could run up to the deadline of 11:59 p.m. EDT on Thursday.

Fiat and Chrysler are prepared to complete a merger deal by Thursday that would be taken into bankruptcy court as a key element of the restructuring plan if needed, a person with direct knowledge of the preparations said.

Daimler quits Chrysler holding

David Twomey — Tue, 28 Apr 2009 07:49:24 +0000

Chrysler’s former business partner Daimler has come up with a deal to extract itself from the 19.9 per cent stake it still holds in the American carmaker.

A report carried on Reuters newsagency said that Daimler AG on Monday reached an agreement with Chrysler, the US carmaker’s owner Cerberus Capital Management, and the US Pension Benefit Guaranty Corp to exit its 19.9 percent stake in the company.

Daimler sold an 80.1 percent stake in the US carmaker to private equity firm Cerberus in 2007, ending a stormy decade long relationship with the struggling US carmaker that is now operating under US government aid.

Daimler said the remaining stake in Chrysler would be redeemed and it would forgive the repayment of loans it had extended to Chrysler that it already has written off in its 2008 financial statements.

The German carmaker had loaned Chrysler US$1.5 billion in 2008 that is a second-lien secured loan, junior to a nearly US$6.9 billion of loans now under negotiations between the US Treasury and other Chrysler creditors.

Daimler said it agreed to pay $200 million to Chrysler’s pension plans on the date of the execution of the deal and in each of the next two years.

That will reduce an existing pension guarantee of US$1 billion to US$200 million and that will remain in place to August 2012, Daimler said.

The deal comes a day after the United Auto Workers union agreed to a concessionary deal to cut Chrysler’s obligations to a retiree health care fund.

With Daimler getting out of Chrysler, negotiations with Chrysler first lien lenders remains the chief remaining obstacle for the carmaker to meet the month-end deadline that the US government has mandated in response to Chrysler’s request for additional loans.

President Barack Obama’s auto task force has told Chrysler it has until May 1 to reach agreements for an alliance with Italy’s Fiat SpA, a reduction in secured debt and resolution of labour issues with its unions.

Daimler’s exit paves the way for Fiat to strike a planned deal with Chrysler.

Cerberus and Chrysler have been in negotiations with Daimler to try to buy the remaining stake back from the German automaker since late 2007.

Karmann insolvancy Germany’s biggest car industry collapse

David Twomey — Thu, 09 Apr 2009 03:06:50 +0000

Independent contract carmaker and cabrio roof-top specialist Karmann filed for insolvency on Wednesday, becoming quite possibly the best known German automotive company to fall victim to the industry crisis.

“The sheer unexpected drop in revenue led to the inability to finance the social plan that was agreed with labour representatives,” said the company, which had revenue of 1.3 billion euros (US$1.72 billion) last year.

Karmann presented a restructuring plan in September 2008, but deteriorating finances made the Osnabrueck-based firm unable to pay for a wave of 2240 layoffs, half of Karmann’s 4460 German workers.

Most famous for the 1950s VW Beetle-based coupe dubbed the Karmann Ghia, the company also developed the retractable hardtop roof first introduced with the Mercedes-Benz SLK before the idea was later copied by competitors, finding widespread use in popular volume models like the Peugeot 207CC.

In recent years, a trend an among auto makers such as Volkswagen and Daimler to reduce outsourcing the assembly of cars to third-party firms, made it more difficult for Karmann to win new contracts. The trend has already crippled rivals such as Heuliez, Carozzeria Bertone, and Pininfarina.

The last Audi A4 cabrio left the assembly line at the end of February and Karmann’s only remaining production contract, to build Daimler’s Mercedes-Benz CLK cabrio, is set to end in mid-May.

Magna Steyr remains the only contract carmaker to receive significant new business, poaching last June the Porsche Boxster contract from Metso’s Valmet.

“Together with the court-appointed insolvency administrator, the goal will be to lead the newly structured Karmann corporate group into a secure future and save as many jobs as possible,” Karmann said in a statement.

A spokesman explained that operations would continue just as before since the company had virtually no bank debt, rather Karmann was forced to file for insolvency under German law since it could not pay for the massive layoff plan.

Cabrio roof-top and door hinge supplier Edscha with revenue of nearly 1.1 billion euros had filed for insolvency at the beginning of February, until now the biggest German auto company to fail since Lehman’s bankruptcy triggered a violent collapse in auto demand in the fourth quarter of last year.

Aabar Investments take 9.1% stake in Daimler

Matt Brogan — Sun, 22 Mar 2009 21:33:28 +0000

Daimler is increasing its share capital by 10 per cent to allow Abu Dhabi’s Aabar Investments PJSC to become a major investor in the company.

Aabar’s total investment will be 1.95 billion euros (AU$3.85 billion), or about 9.1 per cent of the new share capital. The issue price of the shares is 20.27 euros per share.

“We are delighted to welcome Aabar as a new major shareholder that is supportive of our corporate strategy,” Daimler CEO Dieter Zetsche said. “We look forward to working together to pursue joint strategic initiatives.”

The capital increase will be carried out by issuing 96,408,000 new registered no par value shares from Daimler’s Authorised Capital in exchange for cash contributions.

“Daimler is an iconic brand and a financially strong company with a reputation for excellence worldwide,” Aabar Chairman Khadem Al Qubaisi said in a statement. “We are delighted to have received the opportunity to be making this investment.”

Aabar’s largest stakeholder is International Petroleum Investment Company (IPIC), which in turn is wholly owned by the Government of the Emirate of Abu Dhabi.

Daimler not interested in Opel, SAAB or Volvo

Matt Brogan — Wed, 25 Feb 2009 22:57:30 +0000

Daimler last night reaffirmed to the press that it has “no interest” in acquiring Opel, SAAB or Volvo.

Although the purchase could immediately give Daimler a sizable share of the market, management has stated quite bluntly that the decision is final.

“A takeover of Opel is not on the agenda. That also goes for Volvo or SAAB,” Daimler management board member Thomas Weber said.

General Motors is looking for new investors for its European brands Opel and SAAB as it struggles through the economic crisis while Ford is also seeking to sell off Volvo.

BMW shares rise over Daimler speculation

Matt Brogan — Mon, 16 Feb 2009 23:01:11 +0000

BMW shares have risen 2 percent today following speculation on possible closer cooperation between the Bavarian manufacturer and Daimler.

It has been reported that BMW and Mercedes-Benz are stepping up plans to share research and manufacturing as they seek new ways to cut costs during the economic downturn.

“According to our calculations, a cooperation in purchasing, r&d and financial services could generate annual cost savings of up to 3 billion euros ($5.85 billion AUD) or 1.10 euros per Daimler share and 1.60 euros per BMW share,” Commerzbank analyst Daniel Schwarz said. “We believe that BMW is the more efficient company with regard to purchasing compared to (Daimler’s) Mercedes.”

BMW and Daimler have been in talks for years on pooling resources saying all cooperation was conceivable – provided it was not noticeable to customers or detrimental to the two unique brands.

But such moves have been obstructed by engineers at both ends who oppose joining the two arch-rival’s technologies. Growing pressure to reduce costs may yet overcome this opposition.