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Daimler buying 12% stake in Beijing Auto

Daimler and Beijing Automotive are officially going steady, with the German company set to take a 12-percent stake in the Chinese brand tomorrow. The two are already tied up in a Mercedes engine plant in Beijing, of which BAIC will increase its stake in, from 50 to 51 percent. Daimler will also get two seats on the Chinese company's board. BAIC may also gain the ability to produce cars on Mercedes-Benz platforms, according to Automotive News Europe.
The investment in BAIC comes ahead of that company's initial public offering, according to a report form Bloomberg, which indicates the deal will be inked tomorrow in the Chinese capital. According to the report, if the circumstances are right, BAIC may turn around and invest in the Germany company "soon."
It's not entirely clear just how much the 12-percent cut is costing Daimler, although it seems reasonable to assume that, as it's ahead of the IPO, the parent company of Mercedes is getting a bit of a bargain.

Mercedes calls CLA 'best launch in 20 years' as it warns dealers of tight supplies

It's still in the early going, but it's looking more and more like the 2014 Mercedes-Benz CLA is a verifiable home run for the German brand. According to a new report from Bloomberg, the new small car isn't just widening the sales gap between Mercedes and BMW, it's attracting a new, younger breed of customers into the brand's showrooms. But that early success is straining supplies of the turbocharged four-door.
Dealers have been warned that the first half of 2014 will see limited supplies for CLA, with a letter to dealers indicating that "tight inventories and low days supply" will exist from February through June, despite the car's Kecskemét, Hungary plant running at full tilt.
"This is our best launch in 20 years," said Steve Cannon, the US boss for Mercedes. "The CLA has been a phenomenal success right out of the gate." The numbers certainly support that. We reported in early October that Mercedes moved 2,300 CLAs in its first week on sale, and now Bloomberg is saying CLA sales were almost singlehandedly responsible for Benz's November sales gains. Mercedes' annual sales are up 14 percent through the November, and it's enjoying a healthy 7,600-car lead over BMW.

Recharge Wrap-up: BMW i3 goes against Mercedes B-Class ED, Tesla good for business

Car and Driver has published a comparison test pitting the 2014 BMW i3 against the 2014 Mercedes-Benz B-class Electric Drive. The test not only measured the quality of the driving experience, but also all the quantitative details that are especially important when looking at electric vehicles. For instance, the Benz's real-world MPGe surpassed its own rating, but it still couldn't match the BMW. The B-Class, though, won in the range department. We won't spoil all the results, or Car and Driver's overall pick, but you can head over to the article to find out for yourself. Tesla's expanding business, including the Gigafactory being built in Reno, NV, is encouraging growth in the locales and associated businesses. Some of Tesla's suppliers are talking of relocation, wanting to be close to the action stirred up by the electric automaker's expansion. It makes good business sense to be in the same neighborhood as Tesla. "We can react quickly, and our engineers are constantly working with Tesla," says Futuris General Manager Sam Coughlin. Brookings Institute fellow Jennifer Vey says, "The land around Tesla is being redeveloped and reimagined. It's a mash-up of an anchor campus, startups, housing and transit, in a physically compact area where companies can cluster and connect." Read more at San Jose Mercury News. EVs are doing even more to reduce energy use clean up the air, according to new analysis from the Union of Concerned Scientists. According to findings, 60 percent of Americans now live in areas where EVs do more to reduce emissions than hybrids, up from 45 percent in 2012. Average electricity use is now 0.325 kWh per mile, down five percent from 2011. EV performance - in terms of mileage and emissions - is improving compared to traditional fuel vehicles, based on the sources of electricity in various regions. Read more from the Union of Concerned Scientists. Zipcar's carsharing network has launched in Paris. Zipcar is expanding across Europe, and has already established itself in Austria, Spain and the UK. According to Zipcar France's General Manager Etienne Hermite, "In a highly populated city, Zipcar's model has been proven to remove up to 15 personally owned vehicles from the road for each Zipcar in service, reducing parking demand, congestion and emissions." Zipcar European President Massimo Marsili hopes that most Parisians will eventually be just a short walk from a Zipcar.