Chip Shortage Forcing Daimler to Stall Production

In today’s update on the semiconductor shortage, we learn that Daimler has elected to place over 18,000 Mercedes-Benz employees on reduced schedules. With an insufficient number of chips, the manufacturer cannot produce vehicles with sufficient reliability and has decided to ease off until resupplies are more predictable. Unfortunately, that’s unlikely to happen for at least a few months — forcing Mercedes to roll with the punches much like Subaru, General Motors, and Ford. Though this is a problem that’s impacting the entirety of the automotive industry.

Daimler made its announcement on Wednesday, stating that facilities in Bremen and Rastatt will be the first (and hopefully only) plants affected by the stall.

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Rich People Are Finally Back On Top, Mercedes Takes U.S. Quarterly Sales Honors

Mercedes-Benz had an enviable first-quarter and managed to find itself back on top of U.S. luxury sales, icing out its chief rival BMW after two years of living in its shadow. Mercedes reportedly sold 78,256 vehicles within the first three months of 2021, thanks largely to its crossover vehicles.

It’s a year-over-year increase of 16 percent and helps to explain why the brand is relegating the CLS to a single trim while expanding its options for heavy hitters like the GLC Class. But Mercedes’ recent success may have more to do with the way the luxury segment is rebounding as a whole. As pedestrian models are finding themselves coming out of the pandemic with fewer customers, especially of the subprime variety, high-end luxury brands are enjoying clearer skies.

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2022 Mercedes-Benz CLS450 4Matic Becomes Only CLS Available, AMG Gone

If you were in the market for a midsized luxury sedan from Europe, you could certainly do worse than the Mercedes-Benz CLS-Class. While it sacrifices a bit of interior volume for the sake of style, it remains an opulent and sedate experience for the driver with just enough performance to keep the office commute from becoming dull. Of course, those seeking enhanced trills could pay AMG to transform the sedan into the 429 horsepower CLS53. But it has been retired for the 2022 model year, along with the base CLS450 with rear-wheel drive.

That just leaves the CLS450 4Matic, which Mercedes has given some new accouterments — perhaps to take the sting out of the company dumping the more interesting trims.

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Mercedes Spending $59 Million to Build ESprinter in U.S.

On Tuesday, Mercedes announced it would be pouring roughly $59 million (€50 million) to build the all-electric Sprinter van at three facilities. One of them will is the American MBV factory in Ladson, South Carolina, with the remaining two sites naturally situated in Düsseldorf and Ludwigsfelde, Germany.

Over 200,000 Sprinter and Metris model vans have been assembled in the United States since 2006, though the automaker had actually been using the state to avoid the chicken tax for much longer. Considering the region is the second-largest market for Sprinter vans, Mercedes is not interested in dissolving its American commitments either. The investment will be spread across the three facilities for the necessary tooling to build the EV variant the automaker already started selling in Europe.

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Daimler Is Just Going to Be Mercedes-Benz, Says CEO

Daimler had decided some serious changes need to be made before the end of 2021, including a name swap and separate listing for its commercial truck division. While the reason given was to better facilitate the company’s transition toward a “zero- emissions and software-driven future,” investors have been critical of Daimler’s share price after it cratered in March of last year. Though we would argue the bigger concern is the automaker’s lackluster (or absent) growth and declining revenue since 2018.

Regardless, CEO Ola Källenius believes continued changes to the firm’s corporate structure are the only way to go. By 2022, Daimler will simply be known as Mercedes-Benz and have spun off Daimler Trucks with its own listing on the Frankfurt stock exchange.

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Adventures in Advertising: What is the Creature in That Mercedes Ad?

You’ve probably seen a certain Mercedes-Benz ad this year. Or maybe in years past – I think the ad in question ran last year, as well, and maybe even before then.

It’s a holiday ad featuring one of the brand’s luxury SUVs and advertising a winter sales event for Mercedes.

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Junkyard Find: 1985 Mercedes-Benz 300D Turbodiesel With 411,448 Miles

I like to search for junkyard vehicles with exceptionally high final odometer readings, a task made more difficult by the fact that just about every manufacturer besides Volvo and Mercedes-Benz used five-digit odometers well into the 1980s. Even in the middle 1980s, most cars weren’t really expected to hit the 100,000-mile mark … unless they were Mercedes-Benzes with diesel engines, in which case their owners expected them to make it to 300,000 miles. Here’s an oil-fueled W123 in Colorado that exceeded even that expectation.

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Mercedes Reportedly Shipping the ESprinter Stateside in 2023

Mercedes-Benz is reportedly planning to bring an electric commercial van, presumably the eSprinter, to the United States as early as the third quarter of 2023. While the all-electric van launched earlier this year in Europe, the manufacturer said it wanted to hold off on North American exports for reasons that should be obvious to anybody familiar with the industry. The model’s rather low range (up to 96 miles, depending on load and route) makes it a poor fit for North America’s wide-open spaces, as does its standard 75 mph (or optional 50 mph) top speed. Meanwhile, the necessary homologation efforts required to sell the eSprinter in the U.S. would only increase the price of a vehicle already ill-suited to the nation’s roadways.

Were it to come here now, we’d be looking at a cargo van with an MSRP dangerously close to $60,000 and the top speed and range of a small-displacement dirtbike. Regulatory incentives aside, it doesn’t seem like a worthwhile addition to the North American landscape. But analysts are worried that Mercedes-Benz needs to get a move on and ensure the vehicle comes to the U.S. market before it’s edged out by the competition. It’s a position we’d be inclined to agree with had the eSprinter arrived with more robust specifications.

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Fancy Forward: Mercedes-Benz Can No Longer Cater to Plebs

Mercedes-Benz looks poised to retreat from high-volume compacts. During an online corporate strategy meeting held on Tuesday, Daimler CEO Ola Källenius indicated that the luxury subsidiary may have overextended itself.

“Maybe we went at a bit too far to cover each and every space into each and every segment. Compact particularly comes to mind,” he explained. “This is not where the main thrust should go, we should not become a competitor of the volume makers.”

But the company only has itself to blame for that. Around a quarter of the brand’s annual sales come from compact vehicles and they’ve been taking up a larger share of its product portfolio. Källenius seems to think Mercedes has done enough to broaden its appeal and need to refocus on higher-end vehicles with better margins. “Our [current] strategy is designed to avoid non-core activities,” he said, adding that funds will be prioritized for more profitable products.

“We’re not chasing volume, we’re targeting profitable growth.”

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Mercedes-Benz Abandons Manual Transmission, Sticks With Streamlining

As the manual transmission gradually joins the wheel-mounted throttle lever in the automotive history trash bin, we’ve been wondering which manufacture would be the next to take a bold stance against be-clutched vehicles. Today we have our answer, thanks to a tweet explaining the brand’s research boss had indicated Mercedes-Benz doesn’t have room for manuals in its current restructuring program.

“The head of @MercedesBenz’s R&D operations, Markus Schaefer, has confirmed the company will ‘eliminate manual transmissions’ as part of cost-cutting initiatives that will also see a ‘substantial reduction in platforms’ and a ‘very dramatic reduction in combustion engines,'” automotive journalist Greg Kable explained via social media on Tuesday.

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Junkyard Find: 2001 Mercedes-Benz ML55 AMG
Since trucks, truck-shaped cars, and generally truck-influenced vehicles dominate American roads in the present day, it’s about time I started paying attention to high-end luxurious German truck-like machines in the vehicle graveyards I frequent. Such machines have been easy to find in such places for quite some time now, due to the notoriously quick depreciation of large-dollar German cars that don’t get the meticulous maintenance they deserve, but prior to today, we’d just seen a single BMW X5 in this series. Let’s go right to an AMG for our first Mercedes-Benz SUV: this 2001 W163 ML55 AMG.
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Daimler Promises Digital Perfection With 2021 Mercedes-Benz S-Class

The S-Class has always been the sparkling sapphire in Daimler’s crown. The model has historically offered unparalleled luxury and cutting-edge tech that gradually trickles down to the rest of the lineup. It also shows off what Mercedes-Benz is capable of when, running on all cylinders, it sets out to make the best car money can buy without crossing over into obscene extravagance. In this respect, the 2021 S-Class seems to deliver as it always does.

A little larger than its predecessor, the next incarnation of Mercedes’ finest comes in at 208.2 inches long, 76.9 inches wide and 59.2 inches tall. Its extended wheelbase and short overhangs gives it the impression of a smaller vehicle from afar, however. While the manufacturer happily suggests this allowed for an overall increase in the cabin airiness, Daimler admits the model’s technology is what’s supposed to get one salivating — and it did its utmost to make sure it’s omnipresent.

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Junkyard Find: 1992 Mercedes-Benz 500 SEL

Top-of-the-line German luxury sedans are worth plenty… until, suddenly, their values slam down to salvage-title Hyundai Scoupe territory. For today’s Junkyard Find, an early W140 S-Class that sold new for the 2020 equivalent of $175,000, now parked between a couple of prole-grade Japanese machines in a Phoenix yard.

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Daimler: Here Come the Savings, There Go the Jobs

In November, Daimler announced a restructuring plan that called for the elimination of 10,000 jobs, claiming the effort would result in an estimated 1.4 billion euros ($1.5 billion) in savings by the end of 2022. Chairman Ola Källenius may just be getting warmed up.

According to German outlet Handelsblatt, sources within the company claim austerity measures will be expanded at Tuesday’s investor conference. Källenius is said to raise the job cut figure to 15,000 while scaling back (or dropping) several side businesses that aren’t turning a profit. As well, the automaker will likely axe a few models that don’t fit in with the core brand’s luxury image, starting with the Nissan Navara Mercedes-Benz X-Class.

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Mercedes to Pay $13 Million U.S. Regulatory Fine As NHTSA Keeps Watch

Mercedes Benz will pay a $13 million penalty to U.S. safety regulators over a failure to report a string of necessary recalls. A signed settlement on file with the National Highway Traffic Safety Administration (NHTSA) indicates that Daimler’s American arm could be on the hook for up to $20 million in regulatory fines.

The remaining $7 million is in the hands of the NHTSA, which has to eventually decide whether or not Mercedes expedited its recall notices or improved upon its recall processes. The automaker will be audited by the regulatory agency until 2022 to help make those assessments.

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  • Oberkanone My grid hurts!Good luck with installing charger locations at leased locations with aging infrastructure. Perhaps USPS would have better start modernizing it's Post offices to meet future needs. Of course, USPS has no money for anything.
  • Dukeisduke If it's going to be a turbo 4-cylinder like the new Tacoma, I'll pass.BTW, I see lots of Tacomas on the road (mine is a 2013), but I haven't seen any 4th-gen trucks yet.
  • Oberkanone Expect 4Runner to combine best aspects of new Land Cruiser and new Tacoma and this is what I expect from 2025 4Runner.Toyota is REALLY on it's best game recently. Tacoma and Land Cruiser are examples of this.
  • ArialATOMV8 All I hope is that the 4Runner stays rugged and reliable.
  • Arthur Dailey Good. Whatever upsets the Chinese government is fine with me. And yes they are probably monitoring this thread/site.