Autoblog

Hyundai, now a world-class engine manufacturer, may lend engine technology to Mercedes-Benz for a future four-cylinder powerplant. It was just a few short years ago that DaimlerChrysler, Mitsubishi, and Hyundai banded together in the Global Engine Manufacturing Alliance (GEMA) to build the so-called World Engine (pictured at right). The GEMA engine, with displacements ranging from 1.8-liters up to 2.4-liters, is found under the hood of more than a handful of Chrysler, Dodge, Jeep, Mitsubishi, and Hyundai products.

While word isn't official, Dr. Hyun-Soon Lee, President of the R&D and Corporate Product Planning and Strategy Divisions of Hyundai-Kia Motors, told Automobile Magazine that he had been approached by Dr. Dieter Zetsche, Chairman of Daimler AG, at the Beijing Auto Show about partnering on a four-cylinder powerplant. Dr. Lee didn't disclose the rest of the conversation, but he did add, "I am not sure we want to share our technology." With the hot Genesis Coupe and luxurious Genesis Sedan ready to roll, and distinguished Mercedes-Benz knocking on the front door, it appears Hyundai's hard work is paying off.

[Source: Automobile Magazine]

The automaker formerly known as DaimlerChrysler isn't finished making headlines yet. The NHTSA, which levies fines for manufacturers not meeting CAFE standards, has issued its largest penalty to any automaker, ever, by giving DaimlerChrysler a bill for $30,357.635.50.

The fine is for the carmaker's entire fleet, which includes Mercedes models produced here and overseas. According to the NHTSA, "The penalty for failing to meet CAFE standards recently increased from $5.00 to $5.50 per tenth of a mile per gallon for each tenth under the target value times the total volume of those vehicles manufactured for a given model year."

To be fair, it's only the biggest by a (relatively) small margin, seeing that BMW paid $27,985,925.00 in 2001 -- especially if you consider the drop in the dollar in that time. If you're wondering where part of that European car premium goes -- after it goes into the treasury -- CAFE fines seem to be something Europeans specialize in. Of the more than half a billion dollars in civil CAFE fines, not a cent has been contributed by domestic or Asian automakers. Yet.

[Source: NHTSA via The Truth About Cars]

The last remnants of the merger between Daimler and Chrysler that occurred seven years ago has finally been put out to pasture with the announcement today of a new name for the German automaker. Shareholders voted today on the new name 'Daimler AG', but to keep a connection with co-founder Carl Friedrich Benz, the Mercedes Car Group will be renamed 'Mercedes-Benz Cars.'

If all this is getting a little confusing, just remember that Daimler is responsible for the Mercedes-Benz luxury division as well as the trucking and van businesses, while Mercedes is in charge of the luxury car unit as well as the Smart and Maybach brands.

There was never any doubt that the new company would be called Daimler, but nobody was sure what would happen to the Benz name. Other places it will appear in is the new commercial van division, which becomes Mercedes-Benz Vans, as well as the banking group that's now labeled Mercedes-Benz Bank.

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

You might recall about this time last year, California State Attorney General Bill Lockyer filed a lawsuit in Northern California's U.S. District Court asserting that automakers selling vehicles in the Golden State were liable for the hundreds of millions of dollars of damages its products cause. That lawsuit, which named GM, Ford, Toyota, DaimlerChrysler, Honda and Nissan as the defendants, was thrown out today by a federal judge.

Martin Jenkins, the U.S. District Judge presiding on the case, said that it was impossible to assess how much responsibility automakers had in contributing to the damage caused by global warming in California. Furthermore, he went on to say that lawmakers – not judges – should be the ones responsible for determining if automakers should be held accountable.

[Source: Automotive News – Sub. Req.]

General Motors and the former DaimlerChrysler have been handed a disappointment in a Boston district court. At issue was Vermont's adoption of California's carbon dioxide standard, which requires cars and light trucks to reduce their emissions of the greenhouse gas by 30 percent. GM and DCX brought suit against the state of Vermont, claiming that Federal law was being usurped by states demanding their own emissions standards. Furthermore, the automakers say they couldn't meet the standard, and will have to pull out of Vermont as a result.

Judge William Sessions didn't buy the argument of GM and DaimlerChrysler, and instead upheld the Vermont law. While the standards are tighter than the Federal regulations, Sessions was not convinced that they pre-empt the nationwide requirements. It does appear like a thorny States Rights question, and if more states than the current dozen or so adopt California emissions guidelines, it will continue to cause consternation. It does make the federal regs look useless when states are passing requirements that are more rigorous. It also creates extra cost for automakers, as they've either got to make all of their cars compliant, or sell "Federal" and "California" versions of the same car. The decision will be appealed by the automakers, and we expect this issue to have legs – this is not the last we'll hear of this debate.

[Source: Automotive News – sub req.]

The history of Daimler Motor Corp. is very interesting and full of twists and turns. You can read about it here, but the part we're most interested in today starts in 1960. That's when Jaguar obtained the rights to use the Daimler name, and they have continued to use it on top-of-the-line Jaguars in every country but the U.S. since then. The latest Daimler model was the Super 8 introduced in 2005, pictured above.

So here we are in 2007 when DaimlerChrysler no longer wants to be associated with its American half, but Ford owns the rights to the Daimler name. AutomotiveNews (sub. req.) reports the two companies have worked out a deal that will allow both Ford and DaimlerChrysler to use the name Daimler, adding one more twist in the brand's history. No word yet on how much money exchanged hands during the deal, but Automotive News says it was struck before Cerberus agreed to buy Chrysler.

Stay tuned for the next exciting development on "As Daimler Turns," which just might some vocal Germans unhappy about the automaker not using Benz in its name.

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

August 3, 2007. Today is the day that Cerberus Capital Management LP takes an 80.1% controlling stake in Chrysler, leaving DaimlerChrysler a minority 19.9% share. The "merger of equals" that took place back in 1998 has officially ended, and Chrysler is now a privately-held company with a wide open future. Much ado was made about the difficulty in financing the deal and Chrysler's turnaround effort, but it appears the original amount of $12 billion has been secured. Around $10 billion will come from investment banks, while Cerberus will throw in $500 million and DaimlerChrysler $1.5 billion. That combination of cash shows that the soon-to-be-former DaimlerChrysler still has a vested interest in seeing Chrysler succeed. Speaking of soon-to-be, DaimlerChrysler will be christened with a new name sans any mention of Chrysler on October 4th during a shareholders meetings. The newly minted Chrysler Corp., meanwhile, is planning a big party for this Monday, August 6th, at its Auburn Hills, MI headquarters. Automotive News reports a 15-story banner that reads "Get Read" was installed there yesterday.

Check out the full press release from DCX after the jump.

[Source: DaimlerChrysler]

According to a German magazine referenced by Automotive News, Wolfgang Bernhard is expected to be announced as the Chrysler Group's chairman-in-waiting, pending DaimlerChrysler's sale of the automaker to Cerberus Capital Management. Currently Bernhard is an acting advisor, a consultant if you will, for Cerberus, and spends his days at Chrysler's Auburn Hills headquarters, presumably gathering info for Cerberus on what aspects of the business need the German exec's magic touch the most. When the sale happens and Bernhard officially moves in, the speculation is that current CEO Tom LaSorda will remain in his position and likely report to Bernhard.

Bernhard was formerly VW's brand chief, and before that he worked for Chrysler immediately following the "merger of equals" that resulted in DaimlerChrysler. Other former Chrysler execs are also advising Cerberus at the moment according to Automotive News, including the company's well respected former design chief Tom Gale. Hopefully the news of Bernhard's official return, when it comes, will portend the return of other key Chrysler execs that can aid the company's turnaround efforts.

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

The euro has reached a record high against the dollar, and that is partly to blame for rumors of Cerberus' difficulty in getting the money to pay for Chrysler. Cerberus is paying DaimlerChrysler $7.4 billion for 80.1% of Chrysler Group, but it is trying to borrow $20 billion. With interest rates on the rise, Cerberus wants to get money while terms are at their best. Yet with the market enduring a soft spot, Chrysler's below-investment-grade credit ratings, its 2-year prognosis of more red ink and the dollar declining, skittish investors are concerned that Cerberus might not be able to get the job done. Cerberus Chairman John Snow, however, said he expects the deal to close this quarter as planned.

[Source: Bloomberg]

The majority of Chrysler has just been sold to a private equity firm, but that doesn't mean the two divisions - Mercedes and Chrysler - won't continue working closely with each other. Foreign subsidiaries such as those in Australia will continue working almost as one company according to Chrysler Group Australia managing director Gerry Jenkins, who also revealed that the two sides, though split, will be utilizing "a lot of back-end synergies."

These will be mostly related to the administration side of the car business, such as accounting and IT departments. Under the deal, the Daimler side of the business will loan out its services to the Chrysler team, however, both companies would operate under the same roof in the city of Melbourne.

The parent company of Mercedes-Benz, which is expected to be renamed Daimler AG, still owns a twenty percent stake in Chrysler to allow a sharing of technology between the two sides. Jenkins also said there'll be some ongoing projects in regards to engineering and component sharing, so there's still a vested interest on Mercedes' side to see Chrysler succeed.

[Source: GoAuto]