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Mercedes spent ˆ250 million to win Formula One titles last year
Thu, Feb 5 2015Success in Formula One requires skill, diligence, commitment and ingenuity. It also takes truckloads of money. In the case of Mercedes in last year's world championship, in which it took both the drivers' and constructors' titles in dominant style, those truckloads came to ˆ250 million last season alone – equivalent to over $285m in dead presidents. A report from Germany's own Auto Motor und Sport details the staggering investment that Mercedes made in order to get to the winner's circle last season. After 15 seasons with McLaren netting one constructors' and three drivers' titles, Mercedes motorsport chief Norbert Haug convinced the Daimler board late in 2009 to take over the Brawn GP team that had just won the championship. Because the team would be getting a large payout from Bernie Ecclestone as the returning champions the following year, and with sponsors lined up, Daimler only had to pony up a small portion of a smaller budget: in 2010 (its first season under the Mercedes banner), the team ran on a budget of "only" ˆ153 million ($175m). Over the course of the following seasons, though, the team's share of the TV revenues from Formula One Management went down as Mercedes struggled to climb back up the standings, but successive advocates (including Haug, Ross Brawn and Niki Lauda) successfully convinced the bean-counters in Stuttgart to ratchet up the payments. By 2012, the budget was expanded to ˆ200 million, and further climbed to ˆ250 million in 2013 and 2014. Fortunately for Daimler, the investment was starting to pay off by then as the team finished second in the constructors' standings in 2013, bringing ˆ74 million in from Ecclestone's coffers to cover roughly a third of the budget. With Malaysian oil giant Petronas alone kicking in upwards of another ˆ30 million per season as title sponsor (as of 2009 when it signed on), and untold millions more coming in from other partners, it looks like the actual cost to Daimler for securing both world titles and a winning reputation was actually more like hundred million or so.
Weekly Recap: Mercedes, Volkswagen spend big as import automakers invest in North America
Sat, Mar 14 2015Import automakers are on a building frenzy in North America as resurgent car sales have prompted companies to expand their manufacturing footprints to meet rising demand. That was evidenced this week when Mercedes-Benz announced plans to build a $500-million factory to produce the Sprinter commercial van, and Volkswagen confirmed a whopping $1-billion investment to expand its massive plant in Mexico. Meanwhile Jaguar Land Rover reportedly wants to build a factory in North America, but not for at least three years, and Hyundai is said to be expanding in the southern United States. The common thread in all of this expansion? Trucks, time and money. Mercedes wants to capitalize on the burgeoning work van segment in the United States and will break ground in 2016 on a 200-acre site in Charleston, SC, to build the next-generation Sprinter. The site will have a paint shop, body shop and an assembly line, and 1,300 people will be employed when production ramps up. Why do this, when Mercedes has immense van operations in Germany? It's cheaper to build in the US for the US market. Building locally allows Mercedes to avoid import taxes, forego a complex shipping process that involves partially disassembling German-built Sprinters and naturally, reduces the time it takes to deliver finished trucks to their buyers. "This plant is key to our future growth in the very dynamic North American van market," Volker Mornhinweg, head of Mercedes-Benz Vans, said in a statement. He was speaking about Mercedes and vans, but another German automotive giant, Volkswagen, had similar motives for its mammoth expansion plans in Puebla, Mexico. The added space and production capacity will allow VW to build a three-row version of the Tiguan, and provide another crossover for its US lineup that's light on SUVs. The current Tiguan has two rows. The factory will be able to churn out 500 units daily of the larger variant, and they will be sold in North and South America. It will arrive in the US in mid-2017, a spokesman told Autoblog. VW also plans to build another crossover, a midsize seven-passenger vehicle, at its growing Chattanooga, TN, site. "Localization has become key to safeguarding our competitive position on the global market, and manufacturing the Tiguan in Mexico will bring production closer to the US market," Michael Horn, CEO of Volkswagen Group of America, said in a statement.
2014 Mercedes-Benz CLA order guide leaked
Wed, 06 Feb 2013The dealer order guide for the 2014 Mercedes-Benz CLA has made its way online courtesy of the crew at CLAForums.com, and not only does it shed light on the ways buyers will be able to configure the entry-level sedan, it talks specific option pricing. Shoppers will be able to select between the CLA250 and CLA250 4Matic, and the option sheet should offer a number of packages to suit buyer tastes, including a sport package with tweaked fascias and unique wheels. Bi-xenon headlamps and 18-inch alloys may also be had as well as a panoramic sunroof and a collision avoidance system. The CLA will be available with a number of active safety systems on board, including lane departure warning, adaptive cruise control, park assist and blind spot assist, to name a few.
The new sedan comes in 10 colors, including a very dashing purple Mecedes-Benz calls Northern Lights Violet, and there are a total of four interior trim finishes. The automaker hasn't released final pricing of all models just as of yet - we do know from Mercedes' Kate Upton Super Bowl ad that the car will start at $29,900 - but you can check out individual option and package pricing in the gallery. You can also find more information over at CLAForums.com.