Mercedes-Benz Straightline Blog on Edmunds' Inside Line

August 20, 2008

Fears increase about a Daimler takeover

Daimler and Dieter Zetsche - 260.JPG

There is growing speculation in Europe that Daimler could become a target for a takeover.

Sources close to Daimler management told the Financial Times that company executives indeed are very concerned about a possible takeover because of several recent events. The article cites the following as factors that are intensifying concern over a possible Daimler takeover:

• the "audacious" move by Schaeffler, the privately owned maker of ball bearings and car parts, to take over its larger rival Continental. Potential Daimler suitors could come from emerging markets - or even Daimler's home turf;

• Daimler's warning last month on likely lower future profits;

• Daimler shares prices that are down by more than 45 percent in the past 12 months, reducing its market value to the equivalent of $59 billion;

• the collpase in value across the entire auto industry and the industry's "grim outlook" that has put the worth of the world's still largest automaker, General Motors, at barely $6 billion;

• the lack of "an anchor investor" to ward off unwanted suitors as BMW has with the Quandt family as controlling shareholders. Daimler's only large shareholder is the Emirate of Kuwait, with a stake of 7.6 percent as of the end of April. The rest of its stock is free float, split between institutional and private investors. A new investor might be lured to strip Daimler of its 8.8 billion euros of net liquidity or urge it to split off the truck division, as some of its minority shareholders have long demanded, the paper noted.

Here's AutoObserver's take: Daimler: A Takeover Target?

In a related story, things don't look rosey for European automakers. In fact it looks pretty grim.

Permalink | Comments (3)
Posted by: Bob Holland August 20, 2008, 5:59 AM
Categories: Auto Industry, Maybach, Mercedes-Benz

July 22, 2008

Smart test drive an eye-opener

Had an opportunity recently to spend about 20 minutes driving a loaded (if that word can used) Smart Passion Cabriolet. A few comments:

• It was the worst accelerating car that I've driven in 30+ years. From a dead stop, when giving gas, the 3-cylinder, 999cc engine felt like it was going to stall, rather than move the car forward. I can't imagine what it would be like with a passenger onboard.

• The only way to drive this car is with the auto-manual transmission in "manual mode," using the paddle shifters. Driven in that mode it was actually fun. Still sssslllloooowwww--but fun. In the "auto mode" it will put you to sleep--not a good thing when driving. Also in "auto mode," it's very reluctant to downshift on hills, etc. Frankly, I can't think of a more miserable driving experience. Like I said, "manual mode" is the ONLY way to go with this car--and that is fun! This is the only tranny available; there is no pure manual to be had.

• It requires premium fuel. Are they kidding? In an eco-friendly, save-our-planet car like this?

• Handling? As you might expect, it felt like a micro-mini SUV. It wasn't confidence-inspiring, but that may change with more familiarity.

• Steering seemed a bit slow for a car this tiny.

• While it's capable of 40+ mpg, for a car this size I would expect 70+ mpg.

• $18K or so as equipped--OUCH!

• This car has more "cult" potential than any other car on the market. No question about it, this car is a real conversation starter--a sure plus for shy people (Garrison Keillor would be pleased).

The Smart sort of reminded me of my first car, a '62 VW sunroof. I have fond memories of that car, even though it was as primitive as an anvil. Like that old VW, and despite all the Smart's real-world shortcomings, it's still a hoot to drive. Yes, slow can be fun! I was pleasantly surprised at how good (and stable) it felt at speed, if you can call 40 or 50 mph speed. I would have no problems driving it on back country roads like where I live. Certainly the risk of getting speeding tickets drops to about zero.

Now, if and when they bring over the turbo-powered Brabus Smart--give me a call--ASAP! That should be an ubër hoot to drive.

There currently two Smart dealers here in Maryland, one in Germantown (where I went), the other in Annapolis. Both are paired with Mercedes dealers. Interesting to note that you purchase the car via the Internet, and not the dealer. You merely go to the dealer to pick the car up and have it serviced.

Permalink | Comments (6)
Posted by: Bob Holland July 22, 2008, 4:00 AM
Categories: Mercedes-Benz, SMART

July 18, 2008

Mercedes-Benz to turbocharge all models by 2010; full hybrid S Class coming

Mercedes-Benz is going turbo big time. By the end of 2010 all Mercedes are expected to be turbo-powered. As always, the reason for going turbo is increased fuel economy by using smaller engines, while retaining the power associated with larger engines.

"All our vehicles will have turbocharged engines in series production by the end of 2010 at the latest," Thomas Weber, Daimler board member responsible for research and development, told Automotive News Europe.

In addition there will be an S Class [full] hybrid coming in 2009.

Here's Green Car Advisor's take: All Mercedes Cars to be Turbocharged by 2010; Full Hybrid to Join S Class Next Year

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Posted by: Bob Holland July 18, 2008, 8:28 AM
Categories: Green Tech, Mercedes-Benz, Trends

July 15, 2008

Spy photos: Mercedes McLaren SLR Speedster Hits the 'Ring

After the first round of pseudo spy photos courtesy of Mercedes-Benz, we can now show you some real spy photos of the 2009 McLaren SLR Speedster in action on the Nurburgring. This is the last variation of the SLR that we'll see as the less-than-successful supercar will go out of production soon. Lighter than any of the previous SLRs, the Speedster should be the fastest and most nimble version yet. Its top speed is said to be over 200mph, bring your helmet.

Permalink | Comments (1)
Posted by: Ed Hellwig July 15, 2008, 10:18 AM
Categories: Convertibles, Future Vehicles, Mercedes-Benz, Sports Cars, Spy Photos

July 13, 2008

Spy photos: 2010 Mercedes-Benz R-Class Caught in Death Valley

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Looks like the 2010 Mercedes-Benz R-Class is getting some changes. Caught testing recently in Death Valley, this R-Class prototype shows a few minor styling changes on the outside along with modest interior upgrades. Expect to see a front fascia with squared off headlights that mimic the rest of the Mercedes' lineup while the rear end will remain similar to the current model. The overall design of the cabin will remain the same, but the R-Class will add some new technological features to keep pace with other luxury crossover vehicles. Expect to see this refreshed R-Class on sale by the middle of next year.

Permalink | Comments (1)
Posted by: Ed Hellwig July 13, 2008, 10:30 PM
Categories: Mercedes-Benz

June 25, 2008

Mercedes hoping for hybrid-like diesel tax break

This is interesting: Mercedes-Benz is asking for a tax break, similar to what's available for hybrid buyers, but applied to new diesel vehicles. If this were to occur—and I hope it happens—it would take some of the sting out of the high cost of diesel fuel as well as the increased purchase cost of a diesel engine option.

The good news here is that the Environmental Protection Agency is considering Mercedes’ claim that the new 50-state-legal, diesel-engine Benzes should be in the same category as hybrids that qualify for the federal Alternative Motor Vehicle Credit. So diesel fans, keep your fingers crossed...

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