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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.

Test drive the Mercedes SLS AMG Electric Drive with Chris Harris

It's hard to not like the Mercedes-Benz SLS AMG GT. The all-aluminum coupe is fitted with a wonderful naturally aspirated 6.2-liter V8 delivering 583 horsepower and 479 pound-feet of torque. Not only does the burly combustion engine launch the two-seater to 60 miles per hour in less than four seconds, but it does so with one of the world's greatest exhaust soundtracks as it roars, burbles and cackles down the road.
But what happens when Mercedes-Benz takes away the V8 and its accompanying fire-burning song? Stripped of one of its most appealing assets, does the SLS lose its soul?
Chris Harris recently had the opportunity to take the Mercedes-Benz SLS AMG Electric Drive for a track spin in Europe. Sans gasoline, but with four electric motors providing a combined 740 horsepower (737 pound-feet of torque), all-electric all-wheel drive coupe uses sophisticated torque vectoring and a multi-mode operating system to put oversteer - drifting! - back into the equation. Fun? You bet. See for yourself, below.

Smart brand might be doomed

Reports are painting a less than rosy picture of the Smart brand's future. The Daimler-owned carmaker is going fully electric in 2020, but that might not be enough to keep it alive for long. Inside sources, quoted by Automobile Magazine, are saying Renault is likely to pull out of the partnership that created the current Smart ForTwo/Renault Twingo pairing introduced in 2014. The two rear-engined cars share a platform, and when the current Twingo is done for, Renault might want to part ways. In addition, Mercedes isn't willing to prop up Smart on its own, and there is a possibility that the entire Smart brand could be shuttered by 2026. A previous joint venture was the ForFour hatch co-developed with Mitsubishi, and despite the ForFour name living on in the current generation rear-engined car, the earlier FWD hatchback has quickly been forgotten. Not long ago, Smart presented its Forease open-top concept to give customers a glimpse of what future Smart cars would look like, but at its heart the Forease was still a current Smart dressed up with concept car details. The next-generation Mercedes-Benz A-Class is to be signed off in 2021 for a 2025 introduction, and it can be underpinned by a more flexible, fully scalable platform that could also serve to support a new entry-level Mercedes-Benz vehicle that could render the separate Smart brand pointless. Then there's Geely, who now owns nearly 10 percent of Daimler, and who is partnering with Daimler to launch a new "premium" ride-hailing venture in China. As Geely develops its mobility solutions, it is likely to keep an eye on Smart: Smart cars have been car-sharing staples around the world for quite a while, from users such as Car2Go. Automobile Magazine says that if a Smart is co-developed with Geely, it might suit the Chinese market well, but a global business case might be challenging. In any case, if Smart wants to survive beyond the current Renault partnership, the new model should be agreed upon quickly, and it must be based on a platform flexible enough to support full electric drive. Reportedly, there are now ongoing feasibility studies for a fully electric Daimler "U-Class," which would include a Smart-like three or five-door hatch with two wheelbase options, a ride-sharing shuttle with autonomous capabilities, and an urban delivery panel van. But Smart must justify itself for the upcoming decades, or the future Daimler products that occupy its niche will be wearing a three-pointed star instead.