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BMW expects China to pass US as its top market in 2013

When you combine two billion citizens, 100 cities with more than a million inhabitants and an economy that's as unrestrained as Jim Cramer on an Adderall binge, China's explosive auto industry growth shouldn't be a huge surprise. Audi already lists the communist country as its largest market, while Mercedes-Benz is expecting it to be there in the next few years. Now, according to a report from Automotive News, BMW is expecting the People's Republic to overtake the United States in sales by the end of 2013.
We already discovered the extent that BMW is going to in establishing a dedicated Chinese stronghold, when we explored BMW's Shanghai-based DesignWorks studio ahead of April's Shanghai Motor Show. And while we argued that DesignWorks Shanghai hasn't really borne fruit, it isn't due to a lack of sales.
BMW China has seen a 16-percent jump in year-over-year sales, lead by a 28-percent gain in 5 Series sales. Part of BMW's growth strategy comes from an ever-expanding dealership network. Remember those 100 cities we mentioned with over one million people? According to Karsten Engel, CEO of BMW's Chinese operations, those 100-million-plus city dwellers don't have access to a premium dealership.

US buyers show little interest in big hybrids

The idea of producing large, luxury-vehicle hybrids is turning into a "what were they thinking?" exercise in futility, USA Today reports. General Motors is discontinuing hybrid versions of the Cadillac Escalade, Chevrolet Tahoe and GMC Yukon SUVs, while Mercedes-Benz and Toyota's Lexus division are doing the same with their S-Class hybrid and LS hybrid sedans, respectively. The culprit? Big price increases for fuel economy improvements that border on the unimpressive. Granted, the Escalade hybrid gets 31 percent better fuel economy than the standard version, but that still maps out to a combined fuel-efficiency rating of just 21 miles per gallon. That can be seen as a worthwhile increase, if it didn't cost over $8,000 extra. The 2014 Escalade Hybrid, for example, starts at $74,425 while the non-hybrid can be had for $66,295. Meanwhile, the Lexus full-size hybrid costs $6,000 more than the regular version but only gets 1-2 mpg better combined fuel economy. The result of all these high costs? Low sales. Through April, GM sold 82 of its hybrid SUVs and pickups, down from 541 a year earlier. And the LS hybrid sales were in single-digit territory for April. That isn't stopping Lexus from promoting its hybrids as the right solution (with the wrong facts), though. There are still automakers giving big hybrid vehicles a shot, though. Nissan's Infiniti division is selling a hybrid version of its QX60 and says an impressive 10 percent of QX60 buyers choose the hybrid, which costs just $3,000 more. Looks like money talks. Featured Gallery 2015 Cadillac Escalade: First Drive View 35 Photos News Source: USA TodayImage Credit: Copyright 2014 Brandon Turkus / AOL Green Infiniti Lexus Mercedes-Benz Hybrid lexus ls gmc yukon mercedes-benz s-class infiniti qx60 chevrolet tahoe

Mercedes-Benz may create electric-only brand

Daimler's Mercedes-Benz division may follow in fellow German automaker BMW's footsteps by launching its own separate brand for electric vehicles, Hybrid Cars says, citing German publication Handelsblatt, which quoted people familiar with the process. Daimler's board may make the decision to go ahead with the plan as early next month. And the brand may officially be unveiled at the Paris Motor Show in September. Unlike BMW and the i brand, Mercedes would use its existing factories to produce the newly-branded vehicles instead of operating out of a separate one as the i brand does. The first vehicle under the brand is likely to be an SUV model based on the Mercedes-Benz GLC crossover vehicle and would start sales next year. The product line would be broadened further in 2020. Daimler declined to comment, according to Handelsblatt. Mercedes-Benz and BMW wouldn't be the only two German automakers with plans for more electric vehicle sales. Volkswagen has a plan to unleash as many as 20 electric vehicles and plug-in hybrids to the public by 2020, including the Phaeton and the Audi A8. On that note, reports surfaced last month that VW may build its own "Gigafacory" as it prepares to widen its plug-in vehicle push and bring down their costs. As for US sales, Smart sold 313 ForTwo Electric vehicles, down 43 percent from a year earlier. Meanwhile, BMW's i sales in the US fell 40 percent from a year earlier to 2,723. Currently, Mercedes-Benz's only two electric vehicles are the Mercedes B-Class Electric Drive and the Smart ForTwo Electric two-seat vehicle. In the meantime, take a look at Autoblog's First Drive of the B-Class Electric. Related Video: News Source: Handelsblatt, Hybrid Cars Green Mercedes-Benz smart Electric