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BMW expects China to pass US as its top market in 2013

When you combine two billion citizens, 100 cities with more than a million inhabitants and an economy that's as unrestrained as Jim Cramer on an Adderall binge, China's explosive auto industry growth shouldn't be a huge surprise. Audi already lists the communist country as its largest market, while Mercedes-Benz is expecting it to be there in the next few years. Now, according to a report from Automotive News, BMW is expecting the People's Republic to overtake the United States in sales by the end of 2013.
We already discovered the extent that BMW is going to in establishing a dedicated Chinese stronghold, when we explored BMW's Shanghai-based DesignWorks studio ahead of April's Shanghai Motor Show. And while we argued that DesignWorks Shanghai hasn't really borne fruit, it isn't due to a lack of sales.
BMW China has seen a 16-percent jump in year-over-year sales, lead by a 28-percent gain in 5 Series sales. Part of BMW's growth strategy comes from an ever-expanding dealership network. Remember those 100 cities we mentioned with over one million people? According to Karsten Engel, CEO of BMW's Chinese operations, those 100-million-plus city dwellers don't have access to a premium dealership.

Apple lends prestige to a new Mercedes-Benz music system

Not often does Apple offer its name to products or technologies that emerge from beyond the walls of Fortress Cupertino. Could a partnership with Mercedes-Benz signal the start of something new? Mercedes’ new audio system unveiled this past weekend centers on the integration of Apple MusicÂ’s Spatial Audio with Dolby Atmos surround — a music enhancement generally heard in headphone-listening environments — in selected (and optional) Burmester audio systems. Plans are to offer the components initially in the Mercedes-Maybach S-Class, the S-Class as well as the EQE, EQE SUV, EQS and EQS SUV. No prices for the options were announced. Also partnering in the project is the Universal Music Group, one of the worldÂ’s leading music publishers. According to Mercedes, the Dolby tech “empowers musicians and audio engineers to place discrete audio elements or objects in a three-dimensional sound field, which goes beyond the capabilities of standard stereo productions. The system adapts to any playback environment, meaning fans can listen to music with unparalleled clarity that matches the artist's original vision in the studio.” We would expect no less from 31 speakers in a Maybach, powered by a pair of amps churning out 1,750 watts. Imagine Keith Richards cranking guitar through 31 speakers in an enclosed car cockpit. Almost three out of four music consumers say that they listen mostly in a car, says Mercedes Chairman Ola Kallenius. ”Through this exceptional partnership, we are giving our customers the extraordinary in-car audio experience they expect from Mercedes-Benz,” he said. “Both Apple and UMG share our vision and values and, together with Dolby, we will create a seamless and unique experience for our customers." Partnerships between automakers and audio companies have become common in recent years, and there have been mixed results from systems attempting to create a "surround sound" experience that goes beyond stereo. Bose put its systems into General Motors cars decades ago, and others followed, including Bowers & Wilkins, JBL and even the legendary McIntosh. Most recently, famed Italian speaker designer Sonon faber found a home in Maserati's new Grecale, and British speaker maker KEF is working with Lotus.  

France formally moves to ban Mercedes vehicles using contested refrigerant

That didn't take long. Shortly after a French administrative court gave the French government a ten-day window to reconsider its ban on registrations of Mercedes-Benz A-, B- and CLA-Class cars using the prohibited R134a refrigerant, the government cited an EU directive to formalize banning the sale of the cars. The country's environmental ministry said that registrations "will remain forbidden in France as long as the company does not to conform to European regulations," meaning so long as they do not use the approved R1234yf refrigerant.
Daimler had won the administrative court decision by challenging France's application of a "safeguard" provision in which the EU allows a country to block sales of cars that would "seriously harm the environment." In spite of Daimler's victory, France has cited that very provision as basis for the continuation of the ban.
Daimler got permission from Germany's KBA federal motor authority to keep selling cars with the coolant banned by EU politicians, and is using that national permission as the right to sell the cars throughout Europe. Meanwhile, above that battle, German politicians are asking the EU to let Mercedes sell the cars in France while the KBA does more testing, at the same time as the EU is threatening Germany with repercussions if it doesn't bring the KBA and Daimler into line.