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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.

Aston Martin signs Letter of Intent for technical partnership with AMG

A little over two months ago came reports that Daimler and Aston Martin were in talks, again, about "supply and technical-cooperation agreements." The next step has been taken with Aston Martin announcing that it has signed a Letter of Intent that looks "towards a technical partnership" with Mercedes-AMG GmbH, and the two companies aiming to have definitive agreements done by year's end.
While it will get to use certain electric and electronic components from AMG, the true golden egg for the maker of the Vanquish will be the ability to develop a new line of "bespoke V8 powertrains" that will be fitted to "a new generation of models." In return for opening up the larder, Daimler will get a non-voting stake of up to five percent of Aston Martin.
Nothing else is being said about the tie-up for the moment, but there's a press release below with a few more details.

Buy a V8 Mercedes-Maybach, or splurge for a V12? Oh to have such problems

There's a certain air that surrounds the Maybach badge, and it's not just the scent being pumped out by the ionizer in the car's glovebox. It's the cream of the crop when it comes to German luxury. These cars are filled with an acre's worth of wood and a herd's worth of cows, ensuring your fingers rarely touch materials as pedestrian as plastic. It's as quiet, as smooth, and as imposing as you think it would be. Though the latest model from Mercedes-Maybach, the S550, might have swapped in a V8 and all-wheel drive in place of the V12 at the heart of the S600, no other amenities have been lost in translation. The car's size gives it a certain presence. Staring at the profile shows a wheelbase that spans two counties, necessitating a microphone and speaker setup simply so that the driver can converse with the passenger – and a Maybach will almost always have a passenger. No one buys a Maybach to drive. You buy a Maybach to be driven. No means of transport short of business-class airline seating offers this much space. Sit back, recline the seat, roll up the shades and enjoy your $167,125 cocoon. But you know all of that already. What you really want to know is if $25,000 - the V12-powered S600 starts at $192,225 - is worth it to gain an extra four cylinders, 74 horsepower, and 96 lb-ft of torque. On paper, no, it's not. The two cars have identical performance numbers, and the S550 benefits from Mercedes' 4Matic all-wheel-drive system. Even with all-wheel drive, the S550 weighs less than the nose-heavy S600. Fuel economy is, as expected, superior in the S550. It's rated at 16 city, 24 highway and 19 combined as opposed to 13 city, 21 highway, and 16 combined. Visually, the two cars are identical save for a few badges. The V12 badge on the S600 is replaced with a 4Matic badge on the S550, and that's where things start to get murky. When you're spending six figures on a car, decisions become more emotional than practical. $25,000 is a lot of money, but there's a bigger difference between $25,000 and $50,000 than there is between $167,000 and $192,000. As stated, you don't buy these cars to drive. Performance needs to be merely adequate. A smooth, torquey V12 is likely preferable to a hairy-chested V8, refined as it may be. These cars will never touch redline, lest the passengers spill their champagne. Plus, that V12 badge is worth its weight in country club memberships. Driving an S550 is fine until an owner shows up at an event behind an S600.