Tag: daimler

By on October 11, 2021

Welcome to Rare Rides Icons, a spinoff of Rare Rides where we take a more in-depth look at those particularly interesting cars throughout history. Today’s large and luxurious Icon is the first time we present a Daimler in this series. The DS420 was the flagship of the brand; a car for heads of state. And in fact over 50 years after its introduction, it’s still in use as an official state limousine in several nations.

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By on September 28, 2021

While Mercedes-Benz has gradually been moving away from larger motors, it was still a shock to learn that the company would be removing the brunt of its V8-powered lineup in the United States for the 2022 model year. Higher-end vehicles typically come with broader profit margins and Americans tend to like V8s, so it was strange to see the brand tailoring its product at the last minute. Less surprising, however, was watching the entire automotive community speculate on the reasons why.

As your author is constantly suspect of regulations, it was my assumption that emissions compliance was the main culprit. But one would assume European rules would have put the kibosh on V8s in the home market long before cars were neutered in North America. Mercedes likewise suggested this was not the case, alluding to supply chain issues that have been hampering the industry since the start of 2020 while it promised to fix the problem as soon as possible. Then, Daimler executives started giving different answers and hit the reset button on the global supposition surrounding the discontinued engines.  (Read More…)

By on September 24, 2021

Daimler is getting cozy with Chrysler again, or at least the American side of Stellantis, so they can tackle battery development and production. Those in the know will recall that Chrysler has been passed around more than a bottle of booze at a middle school party. But its long history of partnerships also kept it in business and resulted in some of its better products.

Before the Amero-French merger that resulted in Stellantis, Fiat Chrysler Automobiles was an Italian-American company with facilities dotted around North America. Prior to that, it was known as DaimlerChrysler – resulting in the LX Platform, Pentastar V6, and a wider variety of Jeep Wranglers. Now, Chrysler’s alienated German wife has shown up on the doorstep with a wad of cash and news that she’ll be investing it into the new battery business.  (Read More…)

By on September 22, 2021

While I often criticize manufacturers, I try to remain sympathetic to their collective plight. Despite being multinational corporations that typically lack accountability, they’re still businesses that need to turn a profit to maintain their existence and are constantly coping with fluid regulatory rules or social pressures. That’s one reason why green initiatives are often more about optics and money than achieving any tangible environmental goals.

But not adhering to cultural dogmas can have real ramifications, as BMW and Daimler recently found out. The companies are being sued in their native Germany for allegedly failing to meet carbon reduction targets and not setting an official date to abolish the internal combustion engine.  (Read More…)

By on September 13, 2021

With supply chain hiccups crippling the automotive industry’s ability to conduct business as normal, resulting in rolling production stalls and skyrocketing vehicle prices, manufacturers looked to be in serious trouble throughout the pandemic. But we learned that wasn’t to be the case by the summer. Automakers were posting “surprise profits” because people still needed cars. We also found out there’s been a growing appetite for expensive (see: highly profitable) models and the industry saved itself a bundle by not needing to pay for office space or line workers, as COVID restrictions kept everyone at home.

Having considered the above, most automakers are seriously considering how they can further leverage this new modality. German manufacturers have even said they’re not that interested in going back to the normal way of doing things — instead electing to intentionally limit volumes and focus on high-end models that will yield the greatest return on investment. But it’s not quite the curveball it seems, as some companies were already ditching the volume approach.  (Read More…)

By on June 25, 2021

Mercedes-Benz inadvertently leaked the private data of some of its customers. The good news is that the number of affected people was alleged to have capped somewhere around one thousand at the time of this writing. But the bad news is that this wasn’t like having your e-mail or phone number getting out there. Contents reportedly included customers’ social security numbers, self-reported credit scores, driver licenses, addresses, and credit card information.

While the odds of you personally being affected remain low, the circumstances in which this took place are becoming increasingly common. Customers and interested buyers entering personal data into company and dealer websites between 2014 and 2017 had their data stored via a cloud storage platform. But it wasn’t as secure as it should be and Mercedes is now blaming the vendor for the security breach and subsequent embarrassment.  (Read More…)

By on May 5, 2021

On Tuesday, Nissan Motor Co. announced that it would be selling its shares of Daimler AG. The Japanese firm owns about 1.5 percent of Germany’s oldest automaker and the move is something many were predicting after Renault did the same in March.

Nissan’s offloading will mimic its partners and likewise use an accelerated bookbuild offer that basically means dumping shares as quickly as possible with help from an underwriter. Investors were to expect shares to be priced around 69.85 euros apiece, netting the automaker at least $1.2 billion if everything goes smoothly.  (Read More…)

By on April 21, 2021

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.  (Read More…)

By on March 30, 2021

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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By on March 10, 2021

On Tuesday, a federal judge approved a $1.5 billion settlement to pump the brakes on an investigation conducted by the U.S. government pursuing claims that Daimler used illicit software that allowed excess diesel emissions on 250,000 units. This runs in tandem with another $700 million settlement the automaker is making with vehicle owners, which is likely to see final approval in a few months, and an extensive recall campaign.

The federal case involves the U.S. Justice Department, the California Air Resources Board, and follows a trend of fines for automakers accused of misleading regulators so that diesel vehicles could continue being sold. This kicked off with Volkswagen’s Dieselgate in 2015, with numerous government probes taking place in Europe and North America over the next five years. Many automakers have since been discouraged from relying on diesel powertrains due to rising regulatory actions. European countries that once championed the fuel as ecologically preferable to gasoline, after the advent of biodiesels, are now obsessed with tamping down NOx emissions and getting more electric vehicles onto the road.

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By on February 3, 2021

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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By on December 7, 2020


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. (Read More…)

By on November 13, 2020

Daimler Chairman Ola Källenius went against the grain on Thursday by admitting the company he’s been tasked with overseeing will become significantly smaller in five years. That’s normally not the kind of thing you want to telegraph to shareholders via the media but he’s convinced this is the best course of action for the business.

“The next five years we will become a smaller company,” Källenius told Reuters. “We will have a fundamental change in the industrial footprint on the powertrain side.”

The future of Daimler apparently involves a half-decade metamorphosis into a services-focused software company that just so happens to build vehicles. But the vehicles won’t be those internal-combustion jobs that you grew up around. Instead, they’ll be hyper-efficient electrics from Mercedes-Benz as it re-imagines luxury within the strict confines of environmental sustainability. As a byproduct, Daimler will need fewer employees to help manufacture automobiles. (Read More…)

By on November 11, 2020

Despite every manufacturer on the planet eager to inject mobility services into the business, the array of programs that encompasses has yet to establish itself as a reliable source of revenue. Frankly, the whole thing seems like a gigantic money pit for the industry made worse by how loosely the term is defined. Customer data acquisition, vehicle connectivity, electrification, subscription programs, over-the-air updates, and autonomous driving all fall under the umbrella of “mobility” that’s costing automakers a bundle with the promise of being profitable later.

This week, BMW CEO Oliver Zipse acknowledged the premium his company has had to pay to maintain such programs and that it’s considering a joint venture with Daimler AG to help mitigate cost. This would presumably expand the German-based Free Now car-sharing program they already share — though BMW was cagey on the details.

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By on October 7, 2020

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.” (Read More…)

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