Autoblog

The sale of Jaguar and Land Rover to Tata means that the two British marques will have to look elsewhere for the parts normally supplied by Ford. Following the news that Daimler could be a supplier to both automakers comes word from Dr. Z himself that a deal is a distinct possibility.

Daimler holds a seven-percent stake in Tata Motors, which could make an easy case for Mercedes to supply Jag and L.R. with the necessary components to wean them off of Ford. Dieter Zetsche told Auto Motor und Sport that, "If Ratan Tata approaches us regarding the supply of components, we would be open to talks." AMG-powered XF, anyone?

[Source: Auto Motor und Sport via Automotive News – Sub. Req.]

Daimler may have divested 80.1% of its ownership in Chrysler, but the German automaker is still feeling pain from the Pentastar. The value of Daimler's portion of Chrysler has dropped from $2.18 billion to $852 million not even a year after the two parted ways. The loss of nearly $1.4 billion in value is a fair chunk of change, even for the mighty Daimler, but the news is not all bad for company shareholders. If Daimler hadn't sold Chrysler to the private equity firm Cerberus as fast as it did, the automaker's stock would likely be in much worse shape.

Since the privately owned Chrysler, LLC doesn't have to report earnings, it claims that its fiscal standing is all peaches and cream. According to Chrysler, the company has had positive earnings since it was bought out by Cerberus last year. The official line that explains the discrepancy with Daimler's reporting is that U.S. accounting rules are much more favorable than those overseas. Damn accountants.

[Source: Automotive News - subs. req'd]

Click on the image to view high-res shots of the Mercedes F700 concept

Massive amounts of money are being spent in the alternative energy sector of the automotive industry. Last year, Daimler spent $6 billion in research and development and another $2.7 billion on environmental protection. Expect those already rather large sums to increase in the coming years. Daimler CEO Dieter Zetsche says that the company will "increase these budgets even more and by 2010 we'll invest $21 billion in research and development." Daimler has invested heavily in hydrogen technology and holds twenty-five patents protecting new battery technology for automobile use. Further development will continue to cost a large chunk of change.

Of particular interest is the fact that Daimler intends "to offer at least one model in each of the Mercedes-Benz core model series that is a leader in fuel consumption," according to Zetsche. Despite looming legislation that will require more fuel efficient vehicles, Mercedes-Benz plans on continuing to offer vehicles that will meet the size, performance and luxury demands prospective buyers have come to expect from the premium German marque. Otherwise, it won't be $21 billion well spent.


[Source: The Car Connection]

BMW has been kicking ass and taking names in luxury vehicle sales, and the Bavarian Motor mavens hold the top spot in global luxury sales as proof. Even though sales are more than brisk, top management wants to grow profits, and selling the German automaker's silky-smooth engines to its competitors may be part of the profitability plan. Back in February (and last May), news reports out of Germany said team Bimmer was looking for customers for its engines and transmissions, and now we have verification. Friedrich Eichiner, BMW's board member for corporate and brand development, told Automotive News that the company will decide by year end whether to sell its engines to the likes of General Motors, Daimler and Fiat.

For a relatively small company, BMW has a ton of money invested in engine tech, with a full range of turbo-diesel, turbocharged and naturally aspirated petrol offerings. It makes sense for BMW to sell its engines and transmissions to pocket some extra coin, as what makes a BMW an Ultimate Driving Machine is much more than just what's driving it underhood.

[Source: Automotive News - subs. req'd]

Click above for a high-res gallery of the Daimler Super 8

While most of the automotive press is reporting on Tata's acquisition of Jaguar and Land Rover from Ford's Premier Automotive Group, the fine print shows that the Indian automaker got a whole package of classic British marques to go along with them. In addition to Jaguar and Land Rover, Tata also acquired the rights to use the names of Rover, Daimler and Lanchester.

The Rover name previously belonged to BMW, which bought the Rover group 14 years ago. Although Shanghai (SAIC) bought the rights to produce Rover products, BMW refused to license the name to them (leaving SAIC to label its cars Roewe), instead selling it to Ford who secured the name to avoid confusion with Land Rover. The Daimler name, through an age-old licensing agreement with the Mercedes parent company, is used by Jaguar for a line of even more luxurious versions of its XJ sedan range. The Lanchester name is likewise attached to Jaguar, but having produced its first motor car in 1895, has laid dormant since 1956.

Although the three brands are barely in use, they transfer ownership to Tata along with Jaguar and Land Rover. The option will remain Tata's whether or not to utilize the names, but we wouldn't expect the Indian auto giant to lay out the cash to launch additional brands while it shoulders the financial burden of the $2.3 billion acquisition. We wouldn't be surprised, however, to see Tata license any of the names it can to help raise the funds.

[Source: Automotive News Europe – subscription required]

click above to view more high-res pics of the Mercedes SLR McLaren Roadster

No comment. That's what the Mercedes-Benz communications office had to say in response to rumors that the company is preparing to take over McLaren, the racing team and engineering firm of which Daimler already owns 40%. The report comes from Auto Motor und Sport and suggests not only that Mercedes is considering a buy-out of McLaren, but that the deal has essentially already been hammered out.

The remaining 60% is shared by team principal Ron Dennis and his Saudi business partner Mansour Ojjeh (at 15% each) and Bahraini holding company Mumtalakat, to which Dennis and Ojjeh sold 30% last year. Daimler therefore has the largest interest in McLaren, but if it wanted to take complete control it would have to negotiate with the three other shareholders, or else take controlling interest of 55 or 70% by buying out either Dennis, Ojjeh or the Bahraini partners.

McLaren currently produces the SLR supercar for Mercedes. Although Mercedes is reportedly turning to AMG spin-off HWA for its next supercar, McLaren is meanwhile proceeding with its own P11. Of course, McLaren also fields Mercedes-powered Formula One cars. If Daimler did buy out McLaren, as has long been rumored, it would effectively become the Mercedes factory works team, much like Honda bought BAR and BMW took over Sauber.

[Source: Auto Motor und Sport via Autosport]

Chrysler and Ford have been at the top of the headlines all year long for various reasons, with Ford continuing to slim down by selling off its PAG brands, while Chrysler got dumped by Daimler and went private at the hands of Cerberus Capital Management. 2008 looks to be an equally interesting year in the auto industry, and a recent article in Fortune by senior editor Alex Taylor III suggests that a merger between Chrysler and Ford could be in the cards for the coming year. Talk about your haymakers.

Much of the speculation regarding Chrysler surrounds how Cerberus intends to get itself out from under the prolific paperweight that is the Pentastar. Financial types still feel Cerberus is out to make a quick buck, and that long-term ownership is highly unlikely. We're no big business experts, but it looks to us as though the three headed dog has a very limited list of potential buyers out there, so throwing a blind-folded dart that lands on the Blue Oval is as good a guess as any. It's a crazy Chrysler news day anyway, as TTAC is reporting that Cerberus may be preparing to sue Daimler for tricking the investment firm into buying what a thought was an automaker with nowhere to go but up.

Let us know in the comments what you think about the wild speculation of the day.

[Source: Fortune]

Daimler is joining throngs of other automakers, including Navistar, Nissan and Volvo, to establish India as one of the largest builders of commercial trucks in the world. Its newest venture involves a partnership between Daimler AG and India's Hero Group (great name!), with Daimler investing some $420 million for a 60-percent stake in the India-based manufacturer. The venture will involve the creation of light-, medium- and heavy-duty trucks in one of the world's burgeoning production centers that's still got a lot left to build, and although company officials at both corps remained mum on details, expect things to be firmed up in the first quarter of 2008.

[Source: Economic Times via Automotive News – Sub. Req.]

Mercedes' small cars, the A-Class and B-Class, have not been the runaway success that the German automaker had hoped they would be, partially due to high costs of production that drove retail prices up above their competitors. That's why Mercedes-Benz had been looking at forming a partnership with a rival automaker in order to reduce costs and produce more competitively-priced entry-level models. But after discussions were held with both BMW and Fiat, Mercedes has opted to go it alone.

Read more after the jump.

[Source: Inside Line]

If a G-Class Mercedes stirs dispassionate responses, there may still be a Mercedes for you. While the Gelandewagen is no joke in its own right, Daimler's own ultimate terra bully would roll right over it. Unimogs have been around for about fifty years, and were originally designed as go-anywhere, do-anything work trucks. The U500 Black Edition Unimog is still akin to a vehicular Chuck Norris, but luxed-up to the point that you'd hate to mar the blingy pedals with muddy boots.

England's BigLorryBlog had a chance to bruise the earth with one of these, and found it an object of workmen's desire. The U500 they sampled was not outfitted with any hard labor devices, so the ride was a bit bouncy, but nobody was complaining from the leather clad driver's perch with its own suspension. At €250,000, it's not cheap, but the good stuff never is. Here's what you say when someone questions your buying decision: "Buy the best, cry once. Now get outta my way before I make your Paseo scrap."

Thanks for the tip, Dan!

[Source: BigLorryBlog]