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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

US buyers show little interest in big hybrids

The idea of producing large, luxury-vehicle hybrids is turning into a "what were they thinking?" exercise in futility, USA Today reports. General Motors is discontinuing hybrid versions of the Cadillac Escalade, Chevrolet Tahoe and GMC Yukon SUVs, while Mercedes-Benz and Toyota's Lexus division are doing the same with their S-Class hybrid and LS hybrid sedans, respectively. The culprit? Big price increases for fuel economy improvements that border on the unimpressive. Granted, the Escalade hybrid gets 31 percent better fuel economy than the standard version, but that still maps out to a combined fuel-efficiency rating of just 21 miles per gallon. That can be seen as a worthwhile increase, if it didn't cost over $8,000 extra. The 2014 Escalade Hybrid, for example, starts at $74,425 while the non-hybrid can be had for $66,295. Meanwhile, the Lexus full-size hybrid costs $6,000 more than the regular version but only gets 1-2 mpg better combined fuel economy. The result of all these high costs? Low sales. Through April, GM sold 82 of its hybrid SUVs and pickups, down from 541 a year earlier. And the LS hybrid sales were in single-digit territory for April. That isn't stopping Lexus from promoting its hybrids as the right solution (with the wrong facts), though. There are still automakers giving big hybrid vehicles a shot, though. Nissan's Infiniti division is selling a hybrid version of its QX60 and says an impressive 10 percent of QX60 buyers choose the hybrid, which costs just $3,000 more. Looks like money talks. Featured Gallery 2015 Cadillac Escalade: First Drive View 35 Photos News Source: USA TodayImage Credit: Copyright 2014 Brandon Turkus / AOL Green Infiniti Lexus Mercedes-Benz Hybrid lexus ls gmc yukon mercedes-benz s-class infiniti qx60 chevrolet tahoe

Mercedes-Maybach Ultimate Luxury fully revealed, tea set and all

Mercedes has officially unveiled its Mercedes-Maybach Ultimate Luxury concept following a leak of most of the details last week. As we learned last week, the unusual looking sedan-SUV crossbreed is fully electric with four motors producing a whopping 750 horsepower. Combined with an 80 kWh battery, Mercedes estimates it should have a range of over 200 miles on the European test cycle. It also can handle extremely fast charging from DC chargers outputting 350 kW. Mercedes claims this allows it to gain 60 miles of range in 5 minutes. But there are a number of interesting details that weren't leaked. Many of them have to do with the car's Chinese inspiration, which is perhaps not that surprising for a car that makes its debut in China. The body style is the first influence, which Mercedes says combines the sedan and SUV, the best-selling car classes in the country. On the inside, there are a pair of cues inspired by China. The first is the ebony wood trim that Mercedes calls "Magic Wood." The company says it's very similar to that used in Chinese furniture. In the back, between the two highly adjustable white leather seats with rose-gold stitching, is a complete tea set. And not only does it contain all the containers for tea, but it actually has a variety of teas on offer. They're there to be used in conjunction with the car's relaxation modes that combine lighting, music and scents to set the mood. It's hard to say whether this concept will spawn a production model, since the body style is unlike any currently offered by Mercedes-Benz. But with the crossover SUV market staying hot, and competitors such as Audi and BMW bringing out extra-large SUVs, we wouldn't be surprised if Mercedes eventually offers at least a Maybach-level version of its GLS-Class, if not its own model. Related Video: