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Daimler rebuffs Geely offer to buy stake

HONG KONG/BEIJING - Daimler AG has turned down an offer from China's Geely to take a stake of up to 5 percent via a discounted share placement, as the German automaker has long been reluctant to see existing shareholdings diluted, sources with knowledge of the talks said. A stake of that size would be worth $4.5 billion at current market prices. Although Daimler declined the offer, it told Geely it was welcome to buy shares in the open market, the sources added. Carmakers in China have embarked on a flurry of dealmaking, as they scramble to boost production of electric and plug-in hybrid vehicles ahead of tough new quotas to be imposed by Beijing, which wants to reduce urban smog and lower the country's reliance on oil. People with knowledge of Geely's thinking said the company was keen to access Daimler's electric car battery technology and wanted to establish an electric car joint venture in Wuhan, the capital of Hubei province. Geely, which also owns Swedish car maker Volvo, is still hopeful it can secure a deal in some form over the coming weeks, they added. The two automakers met in Beijing in recent weeks at Geely's behest. There, the Chinese firm, formally known as Zhejiang Geely Holding Group, offered to take a stake of between 3 percent and 5 percent if Daimler would issue new shares at a discount, the sources said. It was not immediately clear what kind of discount for the shares Geely had in mind or whether Geely was interested in buying the shares on the open market. A spokesman for Geely declined to comment. A spokesman for Daimler said the company was "very happy with our shareholder structure at present", but added that it would welcome new investors with a long-term interest in the company. Shares in Daimler were up 1 percent in early Wednesday trade, in line with the broader market.DAIMLER ALREADY TIED TO BAIC, BYD Geely, which has a market value of some $32 billion, is the leading domestic brand in China with a 5 percent market share, according to an analysis by Nomura Securities. A stake of 5 percent would establish it as Daimler's third-largest shareholder behind the Kuwait Investment Authority and BlackRock, who hold 6.8 percent and 6 percent respectively, according to Reuters data.

Weekly Recap: Takeaways from the Frankfurt Motor Show

We obsessively covered the 2015 Frankfurt Motor Show, and naturally, we selected our favorites from this fall's biggest automotive event. Now that the dust has settled, we're looking ahead to what it all means. Here are three takeaways from the floor in Frankfurt. The Germans are serious about electric vehicles: It's a bit cliche to say BMW, Mercedes, and Audi have downplayed electrics in favor of other technologies, like diesels. For a time that may have been true, but those three companies, along with Porsche and Volkswagen, are emerging as leaders in EV development. That was on display in Frankfurt, when all of them revealed either all-electric or plug-in hybrid models. Gas prices are relatively low in the United States, but clearly the Germans are thinking long-term and globally. Everyone is serious about SUVs: You gotta have one, even if you're Bentley or Jaguar. It's 2015 and it's what consumers want. As Jaguar design director Ian Callum put it, "Not to be in the sector would be a little naive for the sake of purity." It's not just the flashy exotic luxury makers. Nissan showed the Gripz concept, which is rakish, radical, and meant to blend traits of SUVs and sports cars into a vehicle that really crosses over. Look for more, especially in the luxury sector, as Rolls-Royce, Lamborghini, and Aston Martin ramp up their own SUV efforts. There's no ceiling to the luxury market: Speaking of high-end cars, companies are continuing to invest in extravagant wares beyond just SUVs. Even during the recession, ultra-luxury makers remained relevant, and now they're back at full stride. In Frankfurt, that was illustrated by yet another S-Class model, the cabriolet, which will come in S550 and S63 AMG variants in the United States. Ferrari also showed off the 488 Spider, and Lamborghini opened up the Huracan LP 610-4 Spyder. Meanwhile, Bugatti's Vision Grand Turismo concept reminded enthusiasts that it's plotting life after the Veyron. European auto shows always draw the glitziest reveals from luxury makers, and this year didn't disappoint. OTHER NEWS & NOTES 2016 Honda Civic redesigned with snazzier style, turbo power The 10th-generation of the Honda Civic debuted this week at events in Los Angeles and Detroit ahead of its launch in the United States this fall as a 2016 model. Honda fortified the Civic with LED lights, an available turbo engine, and a more tech-laden cabin.

Recharge Wrap-up: Cool new Euro VI railroader Unimog, Car2go hearts charity

Mercedes-Benz's mega-cool road-railer Unimog now boasts Euro VI compliance. Used for railroad track maintenance and train shunting work, this diesel-powered Unimog offers about a 90-percent improvement in particulate emissions over the Euro V. The new engine also offers improved efficiency. It provides 231 horsepower, and with eight forward and eight reverse gears, it can travel up to 31 miles per hour in either direction. It also has new in-cabin features that make it easier to use for the driver. Read more about the new road-railer Unimog in the press release below. Carsharing group Car2go has launched a donation feature within its mobile app, called "ride2provide." The feature lets users find "heart cars," which, when used, include a $1 donation to Whole Planet Foundation. The money raised by the ride2provide program goes towards the Whole Planet Foundation's mission of providing microcredit to the poor for creating or expanding home-based businesses. Car2go's ride2provide program started August 4, and runs for 90 days. Learn more in the press release below. China continues to pave the way for more EVs, but some people are still skeptical they'll catch on. Charging station operators will be forgiven some of their electricity fees until 2020, said the National Development and Reform Commission (NDRC). China has already extended tax exemptions on EVs through 2017. The NDRC is also urging local governments to offer subsidies and free charging. Still, the costs involved with installing chargers are keeping many from doing it, and many consumers are hesitant to become early adopters of EVs. Read more at ECNS. car2go Launches "ride2provide" To Help car2go Communities To Work Together To Give Back "ride2provide" To Be Integrated via car2go Mobile App Beginning August 4th car2go To Donate To Whole Planet Foundation® As Program's First Exclusive Charity car2go North America LLC, the fastest-growing global carsharing company, announced that it has launched "ride2provide," a donation feature to be integrated into the car2go mobile app for iPhone and android iOS beginning today, August 4th. The new initiative seeks to help car2go communities across its 15 locations and over 400,000 members in North America to work together in donating to a charitable cause, and will first kick off with a 90-day partnership with Whole Planet Foundation as the program's first exclusive charity.