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Smart brand might be doomed

Reports are painting a less than rosy picture of the Smart brand's future. The Daimler-owned carmaker is going fully electric in 2020, but that might not be enough to keep it alive for long. Inside sources, quoted by Automobile Magazine, are saying Renault is likely to pull out of the partnership that created the current Smart ForTwo/Renault Twingo pairing introduced in 2014. The two rear-engined cars share a platform, and when the current Twingo is done for, Renault might want to part ways. In addition, Mercedes isn't willing to prop up Smart on its own, and there is a possibility that the entire Smart brand could be shuttered by 2026. A previous joint venture was the ForFour hatch co-developed with Mitsubishi, and despite the ForFour name living on in the current generation rear-engined car, the earlier FWD hatchback has quickly been forgotten. Not long ago, Smart presented its Forease open-top concept to give customers a glimpse of what future Smart cars would look like, but at its heart the Forease was still a current Smart dressed up with concept car details. The next-generation Mercedes-Benz A-Class is to be signed off in 2021 for a 2025 introduction, and it can be underpinned by a more flexible, fully scalable platform that could also serve to support a new entry-level Mercedes-Benz vehicle that could render the separate Smart brand pointless. Then there's Geely, who now owns nearly 10 percent of Daimler, and who is partnering with Daimler to launch a new "premium" ride-hailing venture in China. As Geely develops its mobility solutions, it is likely to keep an eye on Smart: Smart cars have been car-sharing staples around the world for quite a while, from users such as Car2Go. Automobile Magazine says that if a Smart is co-developed with Geely, it might suit the Chinese market well, but a global business case might be challenging. In any case, if Smart wants to survive beyond the current Renault partnership, the new model should be agreed upon quickly, and it must be based on a platform flexible enough to support full electric drive. Reportedly, there are now ongoing feasibility studies for a fully electric Daimler "U-Class," which would include a Smart-like three or five-door hatch with two wheelbase options, a ride-sharing shuttle with autonomous capabilities, and an urban delivery panel van. But Smart must justify itself for the upcoming decades, or the future Daimler products that occupy its niche will be wearing a three-pointed star instead.

Mercedes working on new inline-six engines

Mercedes-Benz will make a return to the inline-six-cylinder engine game, according to a report from the UK's AutoCar. It's not clear what's prompting the phasing out of the current array of V6s.
We'll see the first inline-six from Mercedes in next-generation E-Class, set to debut in 2016. Following that, it'll arrive as part of a mid-cycle refresh for the C-Class in 2017. What's particularly special about the new inline-six is its modular nature, which will allow Mercedes to eventually spinoff three- and four-cylinder options, with the three-pot arriving alongside the new inline-six.
In other news, AutoCar uncovered some details on the next C-Class AMG, which will ditch its excellent 6.2-liter, AMG V8 in favor of a 4.0-liter, twin-turbocharged V8, although we've already told you about that. What we didn't know at the time, though, was that the 4.0-liter would be paired first with a new, seven-speed AMG Speedshift transmission and offer all-wheel drive. AC also reports that a nine-speed Speedshift is in the works.

Geely chairman is now the single biggest investor in Daimler

Li Shufu, the chairman and main owner of Chinese carmaker Geely, has built a stake of 9.69 percent in Daimler AG, the German carmaker said in a regulatory filing on Friday. The stake, worth nearly $9 billion at the current valuation for Daimler shares, makes Li the biggest single shareholder in the maker of Mercedes-Benz cars, trucks and vans headquartered in the German city of Stuttgart. A Daimler spokesman called the stake purchase a private investment by Li. "We are delighted, with Li Shufu, to have won over another long-term investor who is convinced of Daimler's innovative prowess, strategy and future potential," the spokesman said in response to a request for comment. "Daimler knows and respects Li Shufu as a Chinese entrepreneur of particular competence and forward thinking." Li's stake purchase makes him the top shareholder in Daimler ahead of the Kuwait Investment Authority, which owned 6.8 percent as of Sept. 30, according to Thomson Reuters data. Earlier this month, the German newspaper Bild am Sonntag reported that the Chinese industry giant was seeking to become Daimler's biggest shareholder, likely exceeding the 6.8-percent stake of the Kuwait Investment Authority. The paper said Daimler had reportedly turned down Geely's $4.5 billion offer for a 5-percent stake via a discounted share placement, saying that Geely could buy shares in the open market. Institutional investors currently own 70.7 percent of Daimler, and the company already has strong ties to Chinese automakers BAIC and BYD. Bild am Sonntag said the move was intended as a strategic alliance against Apple, Google and Amazon on autonomous and connected cars. And Reuters reported that Daimler wants to have bespoke "robo taxis" on the road quicker than Google's Waymo, and views Geely as a strong partner for that. Geely conversely is interested in Daimler's electric car battery technology, and sources quoted by the German paper say there are plans to establish joint electric car manufacturing in Wuhan, China, to meet China's smog-reducing quotas. Geely is developing the Lynk & Co. brand of electric and hybrid cars. Geely owns Volvo, which has enjoyed a renaissance under the arrangement, as well as the maker of London's black cabs. In December, it bought a stake in AB Volvo, the maker of Volvo trucks.