Mercedes-Benz Anticipates No U.S. CAFE Penalty in 2010

Mercedes-Benz Anticipates No U.S. CAFE Penalty in 2010
In previous years, Mercedes-Benz occasionally has had to pay penalties because its corporate average fuel economy (CAFE) figure fell beneath standards set by the U.S. government. That will soon change, as the automaker expects to meet the 2010 CAFE standards.

Starting this summer, all of Mercedes-Benz’s six- and eight-cylinder engines will use direct injection, which covers every car the automaker sells in the U.S. According to Dr. Thomas Weber, Mercedes-Benz’s head of research and development, this development played a large part in helping the automaker meet the U.S. standard.

 “Even for 2009, we aren’t likely to pay much in the way of penalties,” Weber told Automobilwoche. “From 2010 on, we won’t pay anything. That is clearly our goal.”



Vehicles like the new S400 and ML450 Hybrids will certainly help, but Mercedes-Benz is moving towards using forced-induction engines with smaller displacement. For instance, the new twin-turbocharged 5.5-liter destined for its AMG line is reportedly 25-percent more fuel-efficient than the 6.2-liter V-8 it replaces.

We’re not surprised this is a major focus for Mercedes-Benz. In 2006, the company faced a record $30.3 million fine, and a similar $28.9 million fine in 2007. If Weber’s estimations prove correct, Mercedes-Benz has come a long way to reduce fuel consumption while offering customers the power they’ve come to expect.

Source: Automotive News

Next-Gen Mercedes-Benz B-class Could Spawn SUV, Sedan Variants for U.S. Market

Next-Gen Mercedes-Benz B-class Could Spawn SUV, Sedan Variants for U.S. Market
Mercedes-Benz has previously toyed with the notion of bringing its compact B-class range to the United States, but new reports suggest at least two different models could ultimately arrive in our market.



According to Automotive News, M-B marketing chief Joachim Schmidt says the new B-class range will have no less than four variants, and two -- an SUV and hatchback -- are likely to make the trip across the pond. A sedan model is also in the works, and it too could ultimately wind up in America.

Although Mercedes-Benz plans on launching the new B-class range in Europe by the end of next year, the timing of a U.S. launch is uncertain. Schmidt cited the fluxing exchange rate as one hurdle, but also noted that -- as is often the case with small cars -- the business case rests with fuel costs in the U.S.

“The behavior of Americans depends on fuel prices,” Schmidt said, noting his group has seen U.S. consumers move backed towards light trucks. “Nevertheless, we also see a trend towards fuel-efficient cars.”

Even if Mercedes decides to withhold the B-class from our market, it may still come to North America for the Canadian market. The compact five-door hatchback has been offered in Canada since 2005.

Source: Automotive News (subscription required)

Next-Generation Mercedes-Benz SLK Spied

We won’t see a new SLK roadster for another couple of years, but Mercedes-Benz is already diligently testing its all-new 2012 model well ahead of its debut. Surprisingly, engineers decided to leave most -- if not all -- of the heavy camouflage off the car.

Size-wise, the test car looks as if it keeps its current dimensions, but is expected to shed some weight by employing additional lightweight materials. The current SLK’s SLR-inspired nose appears to have been eschewed in favor for a look influenced by the company’s latest supercar, the SLS AMG. Rearview mirrors are mounted on the doors -- another SLS attribute. LED strips below the headlamps keep the SLK in-line with current trends.

The taillights in the rounded rump receive the LED treatment as well, while the SLK's trunk lid gets a subtle spoiler and now serves as the location for the radio/communications antenna. This particular prototype also seems to sport a larger rear glass window.

A new engine lineup with a diesel option is rumored to be in the works. Insiders say it could make its debut in Paris this September, but will most likely make its first appearance at next year's Geneva show

Audi's Stronghold in China Threatened by BMW, Mercedes-Benz

For the last 20 years, Audi has been top dog in the Chinese luxury auto market. Now its reign could be threatened as BMW and Mercedes-Benz begin to gain traction in the emerging market. 

"Mercedes and BMW have more up side than Audi in emerging markets, so it will be difficult for Audi to achieve its target," London-based automotive analyst Arndt Ellinghorst told Automotive News.

As the world's single largest automotive market, Chinese customers are increasingly important to BMW and Mercedes. As a result, both have crafted vehicles specifically aimed at the Chinese market. Tomorrow at the Beijing auto show, BMW will unveil an extended 5 Series, while Mercedes is set to debut its new longer E Class. The reasoning for extended wheelbases is that the wealthier Chinese population is typically chauffeured. 



Earlier this month, Audi posted its first quarter sales figures. With a strong start to 2010, Audi was able to secure the second place spot in global luxury sales, bumping Mercedes down to third. The Ingolstadt based automaker hasn't fared so well in China lately. Over that last 6 years, Audi's market share has slipped from 66 percent down to 46 percent. BMW has climbed from 16 to 23 percent, while Mercedes more than doubled its share, from 7 to 16 percent.

Audi had 159,000 deliveries in 2009, but has a goal to sell 200,000 this year. On track for that target, it sold 51,449 in the first quarter this year. Last year BMW sold 90,500 vehicles, but is on track to surpass that mark, with 34,179 sold through March. Mercedes sold 24,100 vehicles in the first quarter of 2010, and should meet its 100,000 sales goal. BMW is investing $749 million in a new Chinese factory to double capacity to 100,000 units annually. Mercedes already has a 100,000 unit production capacity in China.  

"The potential of the Chinese market remains enormous, and our targets are correspondingly ambitious," Daimler CEO Dieter Zetsche said last week.

Source: Automotive News (Subscription required)

Audi and Xbox to Host Forza 3 Tournament in New York City

Audi and Xbox to Host Forza 3 Tournament in New York City

Want to watch the 2010 24 Hours of Le Mans, but can't make your way to France? Perhaps the AXF 24 Challenge -- a party co-hosted by Audi and Microsoft's Xbox team -- is the second-best way to view the classic enduro.

The event celebrates the Le Mans race and serves as a venue for a digital race challenge. Audi's currently asking gamers to fire up Forza Motorsports 3, pilot a digital 2009 Audi R15 TDI race car around the Circuit de la Sarthe, and submit their best lap times. Those with three best times will be invited to the Audi Forum in New York City on June 12, where they'll compete head-to-head in a four-hour Forza-based endurance race. The winner will receive a one-day program with the R8 at Audi's Driving Experience school in Sonoma, California.

Want to watch the cyber-race in person? Audi's opened the event -- which includes a live feed of the Le Mans race, food, door prizes, and Forza 3 game kiosks-- to those over the age of 21. The festivities will be held from 1-5 p.m., and Audi suggests you preregister.

Source: Audi, Forza

Hybrid Haulers: Ford Announces C-Max Hybrids for European Market

Hybrid Haulers: Ford Announces C-Max Hybrids for European Market

Ford has been producing hybrid vehicles for North America since 2004, but the company hasn't offered one in Europe. This is set to change. Ford announced today it will build both hybrid and plug-in hybrid versions of its new C-Max people mover.

“Our Valencia plant here in Spain will build these new C-Max five-seat hybrid models exclusively for European customers seeking a practical, efficient, and affordable environmental vehicle, while the export to North America of the new Grand C-Max petrol model in late 2011 opens a new era of production for the team at the plant,” said John Fleming, chairman and CEO of Ford of Europe.

Ford is developing two different hybrid C-Max variants. One will function like the company's Escape Hybrid and Fusion Hybrid models, but the plug-in hybrid -- a first for Ford -- may appeal to those living in crowded urban areas.



“The extra benefit of being able to  recharge your batteries at home or other parking locations means that PHEVs might better suit those customers who do the majority of their driving in the city and other urban environments where electric battery power is the preferred powertrain alternative,” Fleming said.

Source: Ford

Chrysler Sales Drop Eight Percent in January 2010

Chrysler Sales Drop Eight Percent in January 2010

When it comes to sales, it's all about new product. For the time being, Chrysler doesn't have much of that, which may help to explain why sales in January 2010 slid 8 percent to 57,143 units.

Some may question the decision to split the Ram pickups from the Dodge brand, but it did help the latter to post a sales increase, something Chrysler's other three brands were unable to do. Dodge itself managed to eke out a 1-percent sales increase, while Chrysler sales fell 2 percent. Jeep sales were down 7 percent, while the Ram brand dropped 25 percent.



The Journey crossover continues to be the sales star at Dodge. 4790 examples were sold, marking a 55-percent increase over January 2009. Other notables included the Avenger sedan, up 44 percent to 3134 units, and the Grand Caravan, which jumped 34 percent to 4298. Caliber sales were up a scant 4 percent, while Challenger and Viper sales dropped 39 and 80 percent, respectively.

At Chrysler, the picture is slightly more grim. The Sebring witnessed a huge rebound, as sales jumped 85 percent to 3593 units. The Town & Country minivan continues to be the top seller, with 4531 examples (a 6-percent increase) moving off showroom floors. The remainder of the lineup, however, was sagging -- 300 sales were down 26 percent, and sales of the ancient PT Cruiser dropped 32 percent.

Jeep saw sales of its compact Compass skyrocket 52 percent to 1244 units, although the similar Patriot slid 7 percent to 1972 vehicles. The Grand Cherokee and Commander posted gains, up 6 and 22 percent, respectively. The Wrangler remains the brand's best-selling vehicle with 4888 copies sold in January, but is still off last year's number of 6362 units. The number-three seller, the Liberty, fell 11 percent to 2987 vehicles.

Slow truck sales truly hurt the Ram brand, which is comprised entirely of trucks. Sales of the new Ram pickup (especially in 1500 form) have helped bolster Chrysler as a company, but even Chrysler's best-selling vehicle saw sales slide 22 percent. Dakota sales, meanwhile, dropped 32 percent to 994 vehicles.

Source: Chrysler