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Mercedes making aggressive plans for Chinese market

Mercedes-Benz is preparing a major product offensive to counteract lagging sales in the Chinese market, aiming 20 new or updated models at the People's Republic in the next two years, according to a report by Reuters. The plan is part of MB's so-called 2020 Initiative, which will see the Stuttgart-based manufacturer dump 2 billion Euros ($2.67 billion) into its Chinese market vehicles in a bid to boost sales to 300,000 units by 2015.
Were it to succeed, China would become the largest market for the Silver Arrow, outpacing Germany and the United States. Leading the charge will be the redesigned E-Class, which is set to launch in China this week. That will quickly be followed by the S-Class, and eventually by the GLA-Class in 2014.
Mercedes has struggled in China, especially relative to its German competition, BMW and Audi. Where Mercedes saw a mere four-percent increase in 2012 sales to 206,150 units, Audi was up a staggering 32 percent, while BMW's numbers jumped 41 percent. While some voices, according to Reuters, accuse Munich and Ingolstadt of boosting their numbers through hefty incentives, the fact remains that Mercedes was just walloped by its competitors last year.

Mercedes forced to lower MPG ratings on two C300 models *UPDATE

*UPDATE: Donna Boland, manager of corporate communications at Mercedes Benz USA, told AutoblogGreen that the sticker change only applied to around 500 C-Class vehicles on dealer lots, since a new C-Class came out in late August. "About 500 are left in the United States, and we've relabeled them," she said. First Hyundai, then Ford and now Mercedes-Benz. The list of companies that have had to change their vehicles' official EPA fuel economy ratings has just grown by one with the announcement that the 2013 and 2014 C300 4-Matic FFV and PZEV versions need to have their EPA labels adjusted. The changes aren't massive, at most one mile per gallon. The changes aren't massive, at most one mile per gallon, but they are lower than before. The FFV version goes from 20 to 19 mpg in the city while the PZEV drops one mpg across the board from 23/20/29 combined/city/highway) to 22/19/28. The FFV's combined (22) and highway (27) ratings stay the same. Other Mercedes vehicles that were spot checked turned out to have accurate labels. The problem, which is reminiscent of the issues that Ford had with the Total Road Load Horsepower, was that "Mercedes underestimated the impact of aerodynamic drag and tire rolling resistance known as 'road-load,'" the EPA said in a statement you can read below. We have asked Mercedes for more information on the issue but have not yet heard back. We're not sure how many vehicles the EPA is retesting (or asking to be retested), but the agency says that the C300 models were evaluated again by Mercedes "with EPA oversight" and the EPA did its own tests at the National Vehicle and Fuel Emissions Laboratory in Ann Arbor, MI. Christopher Grundler, the director of EPA's Office of Transportation and Air Quality, said that the EPA knows that the changes are minimal, but that, "it is important that our oversight system is producing the correct results because even one MPG matters to consumers." In case you need a primer in the recent history of companies adjusting their EPA numbers, check out this and this. Based on today's news, we won't be surprised to hear more changes are coming. EPA Requires Mercedes-Benz to Correct Fuel Economy Labels for Two C300 4-Matic Vehicles WASHINGTON - The U.S. Environmental Protection Agency (EPA) is revising estimates for two 2013/2014 Mercedes C300 4-matic vehicles, the FFV and PZEV, to ensure consumers are given accurate fuel economy values.

Daimler and Geely collaborate to develop 'a highly efficient modular engine'

BERLIN — German car maker Daimler said on Tuesday it will cooperate with China's Geely to build next-generation combustion engines for use in hybrid vehicles. Efforts to share development costs come as the growth potential for combustion engines faces the twin threat of the COVID-19 crisis and stricter fuel-efficiency and emission rules. "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. Geely declined to comment. 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. News of the alliance was a surprise to Daimler's works council at its factory in Untertuerkheim, which specializes in electric and gasoline powertrain assembly. "We are speechless. There was not even a discussion about potential alternative manufacturing locations," said Michael Haeberle, the works council chief for Untertuerkheim. "We have the ability to build four-cylinder engines in Untertuerkheim, but there were no talks about it." Daimler said German factories will be retooled gradually to add electric drivetrains production. Most of the next-generation combustion engines will be made in China, business daily Handelsblatt reported. The alliance with Geely, which owns a 9.69% stake in Stuttgart-based Daimler, means that parts of Daimler's existing partnership with Renault could be pared back. A Renault source told Reuters that the Daimler-Geely project does not mean an end of cooperation between Daimler and Renault. Citing Daimler sources, Handelsblatt said the Daimler-Geely pact would save the German carmaker a "triple-digit million sum" — implying an amount above 100 million euros ($119 million) and less than 1 billion euros. Green Mercedes-Benz Volvo Hybrid Daimler Geely