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Aston Martin and Mercedes-AMG formalize technical partnership

The development of a partnership between Mercedes-Benz and Aston Martin has been a long time coming. The news dates back to 2008, and over the five years since was supposed to lead to a rejuvenation of both the Maybach and Lagonda brands. That program ultimately fell apart, but the tie-in was forged afresh in July when the two automakers signed a letter of intent over a renewed partnership. And now that partnership has been formalized.
In a deal just announced, Mercedes-AMG will build a new V8 engine for Aston Martin that will power a new generation of luxury GTs for the British marque, presumably to replace the 4.7-liter V8 in the Vantage. The relationship appears to be similar to the one already in place between AMG and Pagani, only in this case, will involve Daimler taking as much as a five-percent stake in Aston Martin and an observer seat on Aston's board.
The technical partnership is also set to lead to the supply of electric and electronic systems, and could incorporate "additional areas of cooperation in the future." Whether that will include a fresh attempt at reviving Lagonda remains to be seen, as does the future of Aston's long-serving, Ford-based 6.0-liter V12 engine. But for now you can read the full announcement below.

Maybach crossover looking more likely, Smart crossover possible

Mercedes-Benz executives are still making positive noises about the chances of a Mercedes-Maybach SUV. Following Daimler CEO Dieter Zetsche's answer of "most likely" at the Geneva Motor Show, Mercedes Cars head of sales and marketing Ola Kallenius told Autocar that a Maybach SUV based on the next-generation GLS is "the more likely scenario." That's the same Kallenius that told Automotive News just last November that "we have no plans for it [a Maybach SUV]." It's a subtle shift, to be sure, but it's still a shift. The GLS – introduced as the latest-generation GL in 2013 – is still undergoing testing for its its mid-cycle refresh, so a Maybach version is a few years off. That would, coincidentally, give Mercedes time to see how the other super-luxe entrants are faring, and prepare its charge accordingly. Autocar expects that should it be built, it will come when the GLS shifts to the S-Class platform and most likely get the twin-turbo V12 from the Mercdes-Maybach S600 sedan, although the company's 4.0-liter twin-turbo V8 is possible if there are strong intentions for the Chinese market. Also on Stuttgart's agenda of dreams is a Smart crossover, according to the report. It could be Smart's best chance at profitably extending the range, based on the mania for tiny utes, and that would help both Daimler and the ForTwo's Renault Twingo sibling. It sounds like this is a ways off, though, due to coming up with an engineering solution for the Smart's engine packaging. Related Video:

Foreign automakers pay from $38 to $65 per hour to non-union workers

As leaders for the United Auto Workers gather in Detroit for their Special Convention on Collective Bargaining to work out the negotiating stance for this year's new labor agreements with the Detroit 3 automakers, what they most want to do is figure out how to eliminate the two-tier wage scale. However, the lower Tier 2 wage has allowed the domestic automakers to reduce their labor costs, hire more workers, and compete better with their import competition. As it stands, per-hour labor rates including benefits are $58 at General Motors, $57 at Ford, and $48 at Fiat-Chrysler – a reflection of FCA's much greater number of Tier 2 workers. The Center for Automotive Research released a study of labor rates (including benefits) that put numbers to what the imports pay: Mercedes-Benz pays the most, at an average of $65 per hour, Volkswagen pays the least, at $38 per hour, and BMW is just a hair above that at $39 per hour. Among the Detroit competitors, Honda workers earn an average of $49 per hour, at Toyota it's $48 per hour, Nissan is $42 per hour, and Hyundai-Kia pays $41 per hour. The lower import wages are aided by their greater use of temporary workers compared to the domestics. Automotive News says the ten-dollar gap between those foreign camakers and the domestics turns out to about an extra $250 per car in labor, which adds up quickly when you're pumping out many millions of cars. That $250-per-car number is one that, come negotiating time, the Detroit 3 will want to reduce, as the UAW is trying to raise both Tier 1 and Tier 2 wages. Another wrinkle is that the domestic carmakers are considering the wide adoption of a third wage level lower than Tier 2. Some workers who do minor tasks like assembling parts trays kits and battery packs already make less than Tier 2, but the UAW will be quite wary about cementing yet another wage scale at the bottom of the system while it's trying to fight a bigger battle at the top. News Source: Automotive News - sub. req., BloombergImage Credit: AP Photo/Erik Schelzig Earnings/Financials UAW/Unions BMW Chevrolet Fiat Ford GM Honda Hyundai Kia Mercedes-Benz Nissan Toyota Volkswagen labor wages collective bargaining labor costs