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Daimler, Geely mull China as production hub for hybrid powertrains

FRANKFURT — Daimler and Geely on Friday said China could emerge as a manufacturing and export hub for hybrid powertrains jointly developed for Volvo and Mercedes-Benz cars. Earlier this week, Daimler said it would cooperate with China's Geely to build next-generation combustion engines for use in hybrid vehicles. The engines will be produced in China as well as in Europe, and Geely and Daimler will cooperate in engineering, sourcing and production, the companies said in a joint press release. "The export of the engine from China is considered to be an option," the release further said. Mercedes-Benz aims for more than half of its passenger car sales to be comprised of plug-in hybrids or purely electric vehicles by 2030. Geely is ChinaÂ’s most internationally known automaker. It owns Volvo Cars and Lotus, almost half of Proton and 9.7% of Daimler. Through wholly owned company Polestar, it builds low-volume Polestar 1 hybrid performance cars in the western city of Chengdu and Polestar 2 volume sedans in Taizhou in the east. "The companies plan to develop a highly efficient modular engine," a spokesman for Daimler said, adding that it would be used in hybrid drivetrains and manufactured in Europe and China. The modular engine will be used in cars under different marques at Geely and Daimler, a person familiar with the matter said on condition of anonymity as the companies are still in the early stages of developing the engine. An Conghui, President of Geely Holding Group, President and CEO of Geely Auto Group said: “This project reflects the need for economies of scale and targeted research and development investment in clean and highly efficient powertrains and hybrid drive systems and their applications." Geely also plans to build a plant with annual manufacturing capacity of 30,000 premium EVs in the western city of Chongqing, run by a wholly owned, newly registered company, according to documents on its website. Geely and Polestar declined to comment. The plan comes as foreign automakers including BMW AG and Tesla expand EV production in the worldÂ’s biggest market, sourcing major EV components such as batteries locally and often even exporting a portion of the vehicles it builds.   Auto News Earnings/Financials Green Plants/Manufacturing Mercedes-Benz Volvo Green Automakers Future Vehicles Hybrid

Daimler eMERGE2 test proves ignorance breeds dislike of EVs

Out with the old EVs, in with the new. Daimler announced today that it has finished up the eMERGE electric vehicle project that used Smart Fortwo Electric Drive cars and will now start up eMERGE2, which will use Mercedes-Benz B-Class Electric Drive and PHEV vehicles. As before, the tests will take place in Germany. The first, just-finished eMERGE program ran from May 2013 to June 2015 and put over a million kilometers (621,000 miles) onto 146 Smart Fortwo EDs. Daimler said that over the two years, the vehicle with the most efficient annual energy consumption used just 10.4 kWh for all of its 100 kilometers. The best full-charge range over the year was 161 kilometers (100 miles). Perhaps most interesting, though, was one of the projects findings: "the less an interviewee knew about electric mobility, the more negative their opinion" about the technology. In other words, here's some more proof that getting "butts in seats," as it were, is one reasonable way to promote electric driving. eMERGE: key contribution to developing the mobility of the future Stuttgart/Berlin, Jul 30, 2015 Broad-based real-world trial of eMERGE project completed Especially for daily distances of 50 km or over the E-car is financially attractive eMERGE2 fleet project now launching with 200 Mercedes-Benz B-Class Electric Drive and plug-in hybrid models Stuttgart/Berlin – After more than one million kilometres in two years – from May 2013 to June 2015 – the real-world trial of electric cars known as eMERGE has been completed. Those taking part in the project were private and business customers with 146 smart fortwo electric drive cars from Berlin, Potsdam and North Rhine-Westphalia. Some of them set records: the lowest average energy consumption over one year was 10.4 kWh/100 km, while the longest range was 161 kilometres. The smart fortwo electric drive is certified with a consumption of 16.3 kWh/100 km and a range of 145 kilometres. The broad-based field trial within the framework of the eMERGE project has not only provided information on user behaviour and e-car technology; it also studied intelligent charging systems for improving the utilisation of the power supply as well as various pricing systems with regard to customer acceptance. Based on transport models, the project partners examined the need for a publicly available charging infrastructure. Within the project Daimler was responsible for collecting the driving and charging data required for evaluation of the field trial.

Mercedes making aggressive plans for Chinese market

Mercedes-Benz is preparing a major product offensive to counteract lagging sales in the Chinese market, aiming 20 new or updated models at the People's Republic in the next two years, according to a report by Reuters. The plan is part of MB's so-called 2020 Initiative, which will see the Stuttgart-based manufacturer dump 2 billion Euros ($2.67 billion) into its Chinese market vehicles in a bid to boost sales to 300,000 units by 2015.
Were it to succeed, China would become the largest market for the Silver Arrow, outpacing Germany and the United States. Leading the charge will be the redesigned E-Class, which is set to launch in China this week. That will quickly be followed by the S-Class, and eventually by the GLA-Class in 2014.
Mercedes has struggled in China, especially relative to its German competition, BMW and Audi. Where Mercedes saw a mere four-percent increase in 2012 sales to 206,150 units, Audi was up a staggering 32 percent, while BMW's numbers jumped 41 percent. While some voices, according to Reuters, accuse Munich and Ingolstadt of boosting their numbers through hefty incentives, the fact remains that Mercedes was just walloped by its competitors last year.