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Mercedes may be working on a new electric car dubbed 'Ecoluxe'

Automobile has a lengthy piece this month on how the four German mass-market luxury manufacturers each plan to go after Tesla with their own electric vehicles. It was written by Georg Kacher, the magazine's European bureau chief, and the English version came a month after he wrote the German-language original for Autobild. Tesla isn't exactly a threat to the Germans, but, according to the report, the Model S is planting the right kinds of seeds in niches that are important to the luxury players. The thinking is that - in addition to needed electric vehicles anyway for stricter US regulations - it's better to start designing the machinery now. The article posited Porsche's attack would rest on the coming Panamera platform, but a big hurdle would be battery placement. Unable to find one large space for a lithium-ion pack, engineers would instead put batteries everywhere they could, for a supposed tally of some "108 battery pouches" throughout the body. A few days after the Automobile piece, however, Porsche publicly said it had no intention of challenging the Model S, because the enthusiastic driving the brand is known for doesn't jive with useful range. In Kacher's retelling, Mercedes' plans are even more ambitious, supposedly taking aim at the Model S and the coming Model X. It would do this with an investment in excess of $2 billion in a program called "Ecoluxe" – Mercedes has no brand division akin to BMW's i and Audi's e-tron. The new brand would create a four-strong family of bespoke electric vehicles: a smaller platform with a wheelbase around 106 inches and a larger one with a wheelbase around 118 inches. In addition, the range would have "provisions for rear-wheel drive, all-wheel drive, and rear-wheel steering." The numbers are impressive: seating for seven in the larger vehicles, both longer than 16 feet, front and rear storage areas, ratings of up to 610 horsepower and production capacity of 80,000 units per year. When would we see such creatures? Perhaps as soon as 2019. We do know that if Tesla can knock the Model X over the outfield fence, automakers are going to have to do something. We don't know what the chances are that Ecoluxe is Mercedes' first move - but such a plan could help explain the weird Mercedes concept spied in October.

Mercedes-Benz C-Class 'bleeding seat' problem resurfaces [UPDATE]

UPDATE: We received the following statement from Mercedes-Benz: "In rare instances, we incorrectly ordered some of the replacement parts for the seating surfaces. The approved replacement parts will not demonstrate the previous symptoms." It appears Mercedes-Benz has another problem with "bleeding seats" in 2015 C-Class sedans. As we reported in January, an oily residue has been appearing on some versions of the C-Class with man-made MB Tex upholstery, making it look as though the seats were grimy or "bleeding." Mercedes issued a technical service bulletin to its dealers to remedy the problem, but now we're hearing the fix isn't complete. Small parts of the seats – the rear bolsters and a piece below the center armrest – weren't replaced during service and then developed the oily reside again, a source tells us. This occurred within a few days of their service appointment. The dealer followed Mercedes' instructions, our source said, and their C-Class appears to have been one of the first cars fixed. "I'm absolutely flabbergasted at this point ... The new C-Class is such a good car. This is just a shame," they told Autoblog. The bleeding seat issue appears to affect US-built C-Class models with the MB Tex vinyl and possibly other interiors. The bleeding often occurs when a car has been sitting in the cold and then heats up quickly. The number of cars affected is unclear, though the C-Class owners have been vocal in the MBWorld.org forum. At the time of our original report, Daimler AG, parent of Mercedes-Benz USA, said it was aware of the issue and that no injuries had been reported. The residue usually washes off with soap and water. The National Highway Traffic Safety Administration had no recalls, complaints or investigations recorded about the issue as of Wednesday. The fix at the dealer involves changing out the headrest and seat covers, except for a part of the passenger seat that needs to be calibrated by the factory, according to the bulletin. The C-Class is a critical car for Mercedes as it battles BMW, Lexus and others for supremacy in the ultra-competitive luxury segment. The C-Class, which launched last fall, is moving upmarket as Mercedes reshuffles its lineup with the addition of the CLA sedan. The C-Class was the company's best-selling model in January with volume of 6,236 units.

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