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Daimler, Geely mull China as production hub for hybrid powertrains

FRANKFURT — Daimler and Geely on Friday said China could emerge as a manufacturing and export hub for hybrid powertrains jointly developed for Volvo and Mercedes-Benz cars. Earlier this week, Daimler said it would cooperate with China's Geely to build next-generation combustion engines for use in hybrid vehicles. The engines will be produced in China as well as in Europe, and Geely and Daimler will cooperate in engineering, sourcing and production, the companies said in a joint press release. "The export of the engine from China is considered to be an option," the release further said. Mercedes-Benz aims for more than half of its passenger car sales to be comprised of plug-in hybrids or purely electric vehicles by 2030. Geely is ChinaÂ’s most internationally known automaker. It owns Volvo Cars and Lotus, almost half of Proton and 9.7% of Daimler. Through wholly owned company Polestar, it builds low-volume Polestar 1 hybrid performance cars in the western city of Chengdu and Polestar 2 volume sedans in Taizhou in the east. "The companies plan to develop a highly efficient modular engine," a spokesman for Daimler said, adding that it would be used in hybrid drivetrains and manufactured in Europe and China. The modular engine will be used in cars under different marques at Geely and Daimler, a person familiar with the matter said on condition of anonymity as the companies are still in the early stages of developing the engine. An Conghui, President of Geely Holding Group, President and CEO of Geely Auto Group said: “This project reflects the need for economies of scale and targeted research and development investment in clean and highly efficient powertrains and hybrid drive systems and their applications." Geely also plans to build a plant with annual manufacturing capacity of 30,000 premium EVs in the western city of Chongqing, run by a wholly owned, newly registered company, according to documents on its website. Geely and Polestar declined to comment. The plan comes as foreign automakers including BMW AG and Tesla expand EV production in the worldÂ’s biggest market, sourcing major EV components such as batteries locally and often even exporting a portion of the vehicles it builds.   Auto News Earnings/Financials Green Plants/Manufacturing Mercedes-Benz Volvo Green Automakers Future Vehicles Hybrid

Race recap: 2016 Monaco Grand Prix gets very wet, a little wild

More than at any other race, the Monaco Grand Prix question is: which combination of demolition derby, Safety Cars, and bad pit strategy will decide the podium? Last year Lewis Hamilton's late, confounding pit stop cost him victory. The year before, Nico Rosberg's qualifying "mistake" put him on pole and Mercedes-AMG Petronas' pit strategy sealed his win – good for Nico, bad for Hamilton and the rest of the field. In 2013 Hamilton dropped from second to fourth when he lollygagged in the pits. In all three years, Rosberg won. The new X factor for 2016: a Red Bull resurgence that helped Daniel Ricciardo clinch his first career pole. Nevertheless, bad pit strategy had its say in the results. Ricciardo built up a 13-second lead by Lap 15 in spite of heavy rains that forced the Safety Car to lead the first eight laps of the race. Ricciardo stopped on Lap 23 to switch to intermediate tires for the drying track, ceding the lead to Hamilton. Hamilton pitted from the lead on Lap 31 for softs, then Red Bull pulled Ricciardo in again on Lap 32 and made a snap decision to put him on ultra softs, but the tires weren't ready when Ricciardo reached his pit box. What should have been a three-second pit stop turned into a 13.6-second pit stop. Ricciardo left the pits as Hamilton came down the straight and the Aussie lost the lead into the first corner. Despite two attempts to pass later in the race, Hamilton finished first, the Aussie second. It's the second race in a row where pit strategy cost Ricciardo a near-certain win. Conversely, Force India nailed both tire strategy and pit timing with Sergio Perez. The Mexican started in eighth but got into third before half the race was done, passing four cars in the pits, and finished on the podium's final step. Otherwise the order barely changed from about half distance, with Ferrari driver Sebatian Vettel in fourth, followed by Fernando Alonso in the McLaren, Nico Hulkenberg in the second Force India, Rosberg in the second Mercedes, Carlos Sainz for Toro Rosso, Jenson Button in the second McLaren, and Felipe Massa taking the final point for tenth for Williams. Storms didn't only hover over the area, though – dark clouds hung around several teams and drivers. Mercedes' reliability is no longer so reliable. The Silver Arrows suffered engine issues on both cars in qualifying, and Hamilton's problem almost kept him from setting a time in Q3.

Aston Martin tipped for F1 return with Red Bull, Mercedes

Aston Martin could be plotting a return to Formula One for the first time in over half a century. And not as a backmarker, either. That is, at least, if the latest rumors materialize. While most automakers that participate in F1 do so as either a team owner (like Ferrari and Mercedes) or as an engine supplier (think Renault or Honda), the rumored Aston Martin deal would take a different approach. According to Autosport, the proposal would have the Red Bull Racing team run Aston Martin branding – but not its engines. Those would be provided by Mercedes, just like the engines in the British marque's upcoming slate of road cars. In that regard, the deal would not be unlike the one which Red Bull currently has with the Renault-Nissan Alliance, which sees the team running Renault engines and Infiniti branding. Andy Palmer was a pivotal figure in brokering that unusual arrangement when he was working for Carlos Ghosn, and is now tipped to be brokering a similar deal in his new capacity as Aston Martin's CEO. Though Aston has found glory in sports car racing (including Le Mans and its various associated series), it was never much of a contender in grand prix racing. It competed in a handful of races in 1959 and 1960, but never achieved results worth bragging about. Aston was rumored to be plotting a return when David Richards sat as chairman of the company, having run Aston's racing program as well as Honda's F1 team previously. Those rumors, however, never materialized. Whether this time 'round gains any traction remains to be seen - Aston Martin declined to either confirm or deny the reports when reached for comment by Autoblog. Red Bull has been growing increasingly dissatisfied (and increasingly vocal about its dissatisfaction) with Renault engines over the past couple of seasons. Though the two parties won four back-to-back world titles together, things took a noticeable step backward after the new turbo engine regulations took hold for the 2014 season. Nissan/Infiniti and Red Bull are contracted to continue collaborating until the end of next season. After that is when the new Aston deal could take hold, and Mercedes is reportedly keen on the idea so that it could add another customer to its F1 engine supply business and offset the costs of development. That could effectively prove the end of Renault in F1 (at least for the time being). Aside from Red Bull, the French automaker currently supplies only that outfit's sister team Toro Rosso.