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Mercedes spent ˆ250 million to win Formula One titles last year
Thu, Feb 5 2015Success in Formula One requires skill, diligence, commitment and ingenuity. It also takes truckloads of money. In the case of Mercedes in last year's world championship, in which it took both the drivers' and constructors' titles in dominant style, those truckloads came to ˆ250 million last season alone – equivalent to over $285m in dead presidents. A report from Germany's own Auto Motor und Sport details the staggering investment that Mercedes made in order to get to the winner's circle last season. After 15 seasons with McLaren netting one constructors' and three drivers' titles, Mercedes motorsport chief Norbert Haug convinced the Daimler board late in 2009 to take over the Brawn GP team that had just won the championship. Because the team would be getting a large payout from Bernie Ecclestone as the returning champions the following year, and with sponsors lined up, Daimler only had to pony up a small portion of a smaller budget: in 2010 (its first season under the Mercedes banner), the team ran on a budget of "only" ˆ153 million ($175m). Over the course of the following seasons, though, the team's share of the TV revenues from Formula One Management went down as Mercedes struggled to climb back up the standings, but successive advocates (including Haug, Ross Brawn and Niki Lauda) successfully convinced the bean-counters in Stuttgart to ratchet up the payments. By 2012, the budget was expanded to ˆ200 million, and further climbed to ˆ250 million in 2013 and 2014. Fortunately for Daimler, the investment was starting to pay off by then as the team finished second in the constructors' standings in 2013, bringing ˆ74 million in from Ecclestone's coffers to cover roughly a third of the budget. With Malaysian oil giant Petronas alone kicking in upwards of another ˆ30 million per season as title sponsor (as of 2009 when it signed on), and untold millions more coming in from other partners, it looks like the actual cost to Daimler for securing both world titles and a winning reputation was actually more like hundred million or so.
As US exports top 2 million, is America becoming the world's source of cheap cars?
Mon, Feb 9 2015North American auto production is booming with 2014 figures just shy of the of the 17.3-million vehicle record set in 2000. With more models being built on the continent, even more are being shipped overseas. Factories in the US exported 2.1 million cars last year – the highest number ever. About half of those went to Canada and Mexico, but more than ever have been heading to places like the Middle East and China. The upswing comes in part from from after-effects from the Great Recession, according to The Wall Street Journal. With a weak dollar and lower production costs after the financial crisis, building vehicles in the US was relatively cheaper and more competitive in the world. At the same time buyers around the world are going crazy for crossovers. According to the WSJ, BMW and Mercedes-Benz are already exporting the majority of their US production of these models overseas. Both automakers have also announced investments to expand production further here to send more vehicles abroad. Even Honda has been shipping more models out of the country than it imported here. There is a concern this international strength could start slowing because the dollar is strengthening against other currencies, though it's too early to know what the actual effect of this could be, according to the WSJ. "Of course, we closely watch currency exchange, but we don't make changes in production or allocation based on temporary fluctuations in the exchange rate," Ford North American boss Joe Hinrichs told the newspaper. Related Video: News Source: The Wall Street Journal - sub. req.Image Credit: BMW Plants/Manufacturing BMW Ford Honda Mercedes-Benz exports us auto production
Mercedes G500 4x4 rumbles into view
Tue, Feb 17 2015Mercedes keeps raising the bar with the G-Class: just when you think the legendary Gelandewagen couldn't get any more hardcore, it mashes the throttle and does exactly that, plowing through a bank of snow, sand, hell or high water in the process. What you see here is the latest. It's called the G500 4x42. Aside from the various engine specs, the G-Class has been offered in a number of body-styles. Right around the same time that the two-door convertible was discontinued, Benz rolled out the indomitable G63 AMG 6x6 – a half-million-dollar, six-wheeled monster truck powered by Affalterbach's 5.5-liter twin-turbo V8. Evidently enough people liked the idea but didn't see the point in that extra set of wheels, so Mercedes has toned it down – just a little – but kept the high-riding suspension. The result is the truck we've seen testing a couple of times now in a bright shade of Hulk green, and which is now just about ready for its debut. On the scale of extreme G-Wagens, it slots in between the standard model and the 6x6, keeping the jacked-up suspension and giant wheels, but losing the extra axle. The G500 moniker also indicates that it'll at least be available with the 382-horsepower, naturally aspirated, non-AMG version of the 5.5-liter V8 that we'd know as the G550. Just how much of a premium Benz will charge for the beefed-up version, we don't know, as further details are set to be released next week ahead of a likely debut in Geneva. But hopefully it'll be closer to the $115k it gets for the standard version than the $500+k the 6x6 goes for.