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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

Weekly Recap: Mercedes, Volkswagen spend big as import automakers invest in North America

Import automakers are on a building frenzy in North America as resurgent car sales have prompted companies to expand their manufacturing footprints to meet rising demand. That was evidenced this week when Mercedes-Benz announced plans to build a $500-million factory to produce the Sprinter commercial van, and Volkswagen confirmed a whopping $1-billion investment to expand its massive plant in Mexico. Meanwhile Jaguar Land Rover reportedly wants to build a factory in North America, but not for at least three years, and Hyundai is said to be expanding in the southern United States. The common thread in all of this expansion? Trucks, time and money. Mercedes wants to capitalize on the burgeoning work van segment in the United States and will break ground in 2016 on a 200-acre site in Charleston, SC, to build the next-generation Sprinter. The site will have a paint shop, body shop and an assembly line, and 1,300 people will be employed when production ramps up. Why do this, when Mercedes has immense van operations in Germany? It's cheaper to build in the US for the US market. Building locally allows Mercedes to avoid import taxes, forego a complex shipping process that involves partially disassembling German-built Sprinters and naturally, reduces the time it takes to deliver finished trucks to their buyers. "This plant is key to our future growth in the very dynamic North American van market," Volker Mornhinweg, head of Mercedes-Benz Vans, said in a statement. He was speaking about Mercedes and vans, but another German automotive giant, Volkswagen, had similar motives for its mammoth expansion plans in Puebla, Mexico. The added space and production capacity will allow VW to build a three-row version of the Tiguan, and provide another crossover for its US lineup that's light on SUVs. The current Tiguan has two rows. The factory will be able to churn out 500 units daily of the larger variant, and they will be sold in North and South America. It will arrive in the US in mid-2017, a spokesman told Autoblog. VW also plans to build another crossover, a midsize seven-passenger vehicle, at its growing Chattanooga, TN, site. "Localization has become key to safeguarding our competitive position on the global market, and manufacturing the Tiguan in Mexico will bring production closer to the US market," Michael Horn, CEO of Volkswagen Group of America, said in a statement.

2017 Infiniti QX30 First Drive

If you've heard anything before about this car, the 2017 Infiniti QX30, it probably has to do with its corporate parents, an odd couple if there ever was one. Renault-Nissan, Infiniti's corporate overlords, inked a deal with Mercedes-Benz to share some mechanical components and platforms. That deal put a new, very modern 2.0-liter turbocharged inline-four under the hood of the Q50 and was the genesis of what you're looking at here. What are you looking at here? We drove this car in 2015, when it was called a Q30 – originally it was going to be the lower-riding counterpart to the slightly jacked-up QX30. Then Infiniti decided it'd make more sense to sell all variants of this vehicle as CUVs in the US, so we have three slightly different flavors of the QX30 instead. There's the normal version; the Sport, which is 0.6 inches lower; and the AWD, which is 1.2 inches higher. Infiniti brought us to Seattle to sample the Sport and AWD flavors on a semi-circumnavigation of the Puget Sound. It didn't rain a drop, thanks for asking, and instead was sunny and mild the whole time. It's easy to make the QX30 sound more confusing than it actually is. This is essentially a Mercedes-Benz GLA250 with full exterior styling and partial interior design by Infiniti, built in the UK alongside several other Nissans. The powertrain and chassis, including the optional AWD system, were all "co-developed" with partner Daimler, with final calibration and tuning by Infiniti engineers. Here's another way of explaining it: Infiniti needs an entry-level car to appeal to new premium car shoppers, and the QX30 is the prescription. It's a hatchback that's been given the mildest of CUV treatments and a lot of marketing descriptors. That's because hatchbacks are sales death in America. In Europe, they'll see right through the CUV posturing and realize it's just a hatchback offered in three different suspension heights. Whatever you call it to make it palatable to Americans, it's a useful little vehicle. This car is mechanically identical to the Q30, so there are some things we can gloss over. Both are powered by a transverse-mounted 2.0-liter Mercedes inline-four. It's a turbocharged, direct-injection gasoline engine, and it sure feels like one. It sounds like a rock tumbler full of nickels and runs out of breath at about 5,000 rpm. All versions make 208 hp at 5,500 rpm and 258 lb-ft of torque between 1,200 and 4,400 rpm – more than adequate but less than thrilling.