Auto blog

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.

Why Mazda did so well and Volvo so poorly in Consumer Reports survey

The poor performances of Tesla and all three domestic automakers got the headlines in Consumer Reports magazine's latest reliability survey, but there were other results that caught our interest. Tiny Mazda notched the biggest gain among the 29 brands included in this year's list, leap-frogging nine spots to No. 3. Buick, which was in the top 10 last year, fell 11 spots to No. 19, the biggest decline of any brand. And then there's Volvo, a brand often vaunted for its quality and reliability, dropping six spots to dead last. What gives? For starters, all three brands benefited or suffered in large part due to their relatively small portfolio of vehicles. So when raves or complaints rolled in for even one particular model, as was often the case, it weighed heavily on the entire brand. That's especially true when it involves a relatively high-volume, hot-selling model such as the Buick Enclave (more on that in a moment). Mazda fared as well as it did despite the CX-3 losing Consumer Reports' influential "recommended" status due to problems with its climate system, including leaks from the condenser and refrigerant unit that triggered a service bulletin from the automaker in late 2016. Deputy auto editor Jon Linkov said that scratch didn't hurt the overall brand, since the CX-9 crossover and MX-5 Miata both jumped up to replace it on CR's list of newly recommended vehicles, thanks to several back fixes Mazda made to both models. For Buick, the redesigned Enclave SUV earned a "Much Worse Than Average" rating after owners reported problems with the new nine-speed automatic transmission it shares with the Chevrolet Traverse as well as some issues with the climate system. There were issues with rough shifting, plus complaints about the torque converter that necessitated fixes to the computer or outright replacement. "Again, similar stuff that we saw with the Traverse: both first-year vehicles, similar powertrains," LInkov said. He said all-new vehicles or redesigns typically fare poorly in CR's reliability survey due to issues that are hard to suss out before vehicles go into everyday use by consumers. The top-selling Encore and Envision fared well, Linkov said, but were outdone by the Enclave's problematic transmission components. The Enclave was Buick's second best-selling model through September at 35,227 units. Then there is Volvo, about which there is one word to sum up its woes: infotainment.

Volvo Concept XC Coupe does the full monte ahead of Detroit debut [w/video]

When the doors open at the Cobo Center next week for the 2014 Detroit Auto Show, Volvo will lift the veil on its new Concept XC Coupe. But you don't have to even wait that long. A set of images leaked out yesterday to accompany a teaser video released by Volvo, but now the Swedish automaker has revealed the full thing.
The second of three new concept cars aiming to show the way forward for the brand, the Concept XC Coupe follows the Concept Coupe revealed last September. Based on Volvo's Scalable Product Architecture, the Concept XC Coupe is expected to preview the next-generation XC90 crossover, but with two fewer doors and a four-seat cabin.
With orange details, matte rubber moldings and underbody skid plates, the design is said to have been inspired by outdoor equipment manufacturer POC - naturally also based in Sweden - whose products are favored by extreme athletes around the world. It rides on 21-inch wheels and incorporates T-shaped DRL headlights, with distinctive tail-lights earmarked to make their way onto the next generation of production Volvos.