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Daimler and Volvo could jointly develop internal combustion engines

BERLIN — Luxury German carmaker Daimler and Volvo, owned by China's Geely, are considering cooperating to cut the costs of developing combustion engines, a magazine reported on Sunday, citing unnamed company sources. The Automobilwoche weekly cited a Volvo manager as saying there were initial talks with Daimler, but no concrete plans, while a company spokesman said it was too early to talk about firm projects, although it was not excluding anybody. A Daimler spokesman said the company's cooperation with Geely, which owns a 10% stake in the German carmaker, was developing in a positive way, but declined to comment further. Global tariffs, accelerated by a trade war between China and the United States, as well as higher investment requirements for electric and autonomous vehicles, are forcing carmakers to seek new ways to cut and share costs. In October, Volvo said it would merge its engine development and manufacturing assets with those of Geely, creating a division to supply in-house brands and also potentially others with next-generation combustion and hybrid engines. Automobilwoche said this new division would start operating by the end of March, which could be a possible starting point for cooperation with Daimler, while a further step could be a partnership to develop electric power trains. Geely and Daimler have said they plan to build the next generation of Smart electric cars in China through a joint venture and the two companies are also cooperating on a premium ride-hailing service in China. Geely bought Volvo Cars in 2010 from Ford, allowing the Swedish brand to operate on an arms-length basis. But in recent years, it has deepened cooperation between the two brands. Volvo already supplies engines to some Geely-branded vehicles, sharing technology through Geely's Lynk brand. Both companies share and develop common vehicle platforms. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

2016 Mercedes-Maybach S600 offers the plutocratic life for $189,350*

Mercedes-Benz has officially announced pricing on its ultra-luxurious Maybach S600, and just as we feared, you'll probably need to be a Saudi oil sheikh to afford one. Prices start at $189,350, excluding a paltry $925 destination charge. That princely sum does not, however, make the Maybach version of the latest S-Class the company's most expensive sedan. That honor still goes to the ridiculously powerful and absurdly priced S65 AMG, which starts at $222,000. The new model's price easily surpasses that of the vehicle it's based on, though. Mercedes old flagship sedan, the S600, starts at $166,900. Of course, you do get quite a lot of kit for spending an extra $23,000, besides the C-pillar-mounted Maybach badges and the extra 7.9 inches of wheelbase. Upgrades include a re-engineered interior that should be quieter than even the tomb-silent standard S-Class. Even the seats, which are lined in extremely supple leather, are noise insulated. Speaking of those seats and leather, the Maybach trim should include a fairly extensive range of different woods and leathers, for that personal touch. Beyond that, Maybach-exclusive features include a new fragrance for Mercedes' silly Air-Balance system, as well as a pair of silver-plated champagne flutes. What are your thoughts? Does the Maybach S600's extravagant price tag seem worth it (we're leaning towards yes)? Have your say in Comments. Mercedes-Benz Announces Pricing On All-New 2016MY Mercedes-Maybach S600 Segment-Leading Flagship to Start at $189,350* January 16, 2015 - MONTVALE, NJ The S-Class range has a long established tradition of setting the benchmark in the luxury segment, and the launch of the highly-anticipated new Mercedes-Maybach S600 in April will further assert its leadership position in the U.S. market. Priced from USD $189,350, this exceptional addition to the product lineup offers more than 8 inches in total length when compared to the standard S-Class and features a suite of intelligent safety technologies and exclusive appointments that complete the opulent package. The Mercedes-Maybach S-Class seamlessly melds the perfection of the Mercedes-Benz S-Class with the incredible heritage and prestige of the Maybach nameplate. Mercedes-Maybach is not an equipment line. It is a sub-brand that introduces Mercedes-Benz vehicles in an even more exclusive form.

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.