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Mercedes expected to announce US HQ relocating to Atlanta today

Employees at Mercedes-Benz's US headquarters in Montvale, NJ, are set to gather today for the annual president's reception. Only this year, company chairman Dr. Dieter Zetsche is expected to fly in from headquarters to make a big announcement. That announcement, according to mounting speculation, is that MBUSA is moving to Atlanta. News of the potential move first broke around three weeks ago, suggesting that the German automaker was looking to relocate its US headquarters from New Jersey to somewhere in the South, with the Atlanta area tipped as the front-runner. Now sources are expecting that announcement to be made imminently. Although the specifics of the move have yet to be made public, Mercedes is tipped to be looking at moving into either a purpose-built facility or an existing office space in the Sandy Springs area, specifically near the intersections of Georgia 400 and Abertnathy, where UPS has its headquarters. The move is said to have hinged on a substantial incentives package worth nearly $50 million put together by the Georgia state government. The state of New Jersey is said to have offered similar incentives to keep Mercedes in the Bergen County borough of Montvale, where it employs 800 in its 141,000-square-foot office complex. One advertising company even put up billboards encouraging the company to stay, but if the reports prove accurate, it looks like their efforts may have been too little and/or too late. Mercedes wouldn't be the first automaker to move to the South, where numerous foreign carmakers have been also setting up factories. Toyota is also preparing to move its US headquarters to Texas, and though already based in Georgia, Porsche is preparing to move into a new $100 million facility, complete with on-site test track, closer to Atlanta's Hartsfield-Jackson airport that has grown into a major international hub. The move on Mercedes' part would put its US base of operations closer to its factory in Tuscaloosa, AL, and the port near Savannah, GA, from which it ships out the former's production overseas.

Car subscription services: A slow, expensive start — but the potential is huge

Americans are used to paying for subscriptions — to magazines and cable television, for instance — but experience shows they'll cancel when the price of admission gets too high, or there are more tempting alternatives. Cord cutters ditched nearly 1.5 million pay-TV subscriptions in 2017, according to a survey by Leichtman Research Group. Cable TV started out cheap with basic offerings, and then got expensive. The auto industry's subscription offerings are new, but they're starting out costly, and not price-competitive with traditional leasing. The upside is that they take the hassle out of car ownership for busy people by letting the service take care of maintenance, insurance, licensing and taxes. And they give consumers choice, often allowing relatively painless switches between different cars in the automakers' lineup. Subscription services also point the way toward an ownership-free auto experience, and offer an easy transition to a potential world where ride- and car-sharing will be dominant. Subscriptions are here to stay, but consumers may take a while to "get" them. Lincoln's subscription service for lightly used 2015 to 2017 models, offered through the Ford-owned Canvas beginning this year, got off to a slow start. Many early subscribers canceled. Last month, Cadillac announced it would " temporarily pause" its $1,800-per-month Book subscription service for "adjustments" as of December 1. According to the Wall Street Journal, "Snags with the back-end technology used to support the service made some customer-service functions tedious and time-consuming, adding costs for the company." The challenge for automakers is to come up with a strategy that offers consumers a compelling, affordable option to regular ownership, and one that can also make a profit. I think they'll find that sweet spot, but they're not there yet. Jack Nerad, former executive editorial director at Kelley Blue Book and author of " The Complete Idiot's Guide to Buying or Leasing a Car," points out that "A lot of people expected that subscriptions would be very valuable for people who wanted inexpensive transportation, but the reality is quite the opposite. Subscriptions are offering more choices for the wealthy.

Mercedes-Benz engines with 48-volt systems coming in 2017

As part of a big green push announced yesterday, Mercedes-Benz is jumping into the world of 48-volt power. The company will launch a new family of efficient gasoline engines next year and will begin rolling out 48-volt systems with it, likely in its more expensive cars first. Mercedes will use the 48-volt systems to power mild-hybrid functions like energy recuperation (commonly called brake regeneration), engine stop-start, electric boost, and even moving a car from a stop on electric power alone. These features will be enabled through either an integrated starter-generator (Mercedes abbreviates it ISG) or a belt-driven generator (RSG). (RSG is from the German word for belt-driven generator, Riemenstartergeneratoren. That's your language lesson for the day.) Mercedes didn't offer many other details on the new family of engines. There are 48-volt systems already in production; Audi's three-compressor SQ7 engine uses an electric supercharger run by a 48-volt system, and there's a new SQ5 diesel on the horizon that will use a similar setup with the medium-voltage system. Electric superchargers require a lot of juice, which can be fed by either a supercapacitor or batteries in a 48-volt system. Why 48-volt Matters: Current hybrid and battery-electric vehicles make use of very high voltages in their batteries, motors, and the wiring that connects them, usually around 200 to 600 volts. The high voltage gives them enough power to move a big vehicle, but it also creates safety issues. The way to mitigate those safety issues is with added equipment, and that increases both cost and weight. You can see where this is going. By switching to a 48-volt system, the high-voltage issues go away and the electrical architecture benefits from four times the voltage of a normal vehicle system and uses the same current, providing four times the power. The electrical architecture will cost more than a 12-volt system but less than the complex and more dangerous systems in current electrified vehicles. The added cost makes sense now because automakers are running out of ways to wisely spend money for efficiency gains. Cars can retain a cheaper 12-volt battery for lower-power accessories and run the high-draw systems on the 48-volt circuit. The industry is moving toward 48-volt power, with the SAE working on a standard for the systems and Delphi claiming a 10-percent increase in fuel economy for cars that make the switch.