According to a report from Auto Motor und Sport, Toyota is considering a partnership with Daimler to build Mercedes-Benz' A- and B-Class sub-compacts on the Japanese automaker's MC platform. The idea is to maximize the efficiency and output of Toyota's European plants, and could also include sharing development costs on each brand's next generation flagships: the Lexus LS and Mercedes S-Class. Daimler has dismissed the report as "speculation," while a Toyota Motor Europe spokesman toed the company line, only saying "It's part of our normal business practice that we regularly talk to other carmakers but there are no specific projects planned at the moment."

[Source: Auto Motor und Sport via Reuters]

Hot on the heels of the Chrysler's tentative deal with the UAW to cut the automaker's VEBA obligations, Daimler AG has announced it's finally reached an agreement to unload its remaining stake in Chrysler. According to Daimler's release, the company's 19.9% stake in Chrysler will be redeemed and Daimler write off a $1.5 billion loan which will help (if it can) avoid putting Chrysler into bankruptcy and facilitate the automaker's deal with Fiat. The agreement is likely to reduce Daimler's second-quarter earnings (before interest and taxes) by around $700 million, however, the German giant had already written down its stake in Chrysler last year. The agreement also includes Daimler paying $200 million into Chrysler's pension plans once the agreements are definitive, and another $200 million each year until 2011. All the gritty details are available in the press release below the fold.

[Image: Bill Pugliano/Getty]

Nerves are frazzled in Stuttgart over the troubles facing Chrysler. Let's not forget that Daimler still has a skin in the Chrysler game, and while everyone natters and frets about whether or not Fiat will prove to be the Savior Of Auburn Hills, execs are also thinking about the worst-case scenario in the halls of Daimler.

According to the Detroit Bureau, Bodo Uebber, Daimler's Chrysler guy, reported recently that concerned shareholders are rightfully nervous, as Daimler could be stuck with a $1 billion liability if Chrysler ist kaput. Unfunded pensions and potential claims from suppliers could result in very bad things for Daimler. Cerberus and the German automaker are also duking it out over whether Chrysler's health was honestly disclosed at the time of the deal, tying up any developments with the remaining 19.9 percent of Chrysler that Daimler still owns. Both Uebber and Dieter Zetsche, Daimler's CEO, are actively trying to unload the company's stake in Chrysler to Cerberus, but predictably, that conversation isn't going anywhere at the moment.

[Source: The Detroit Bureau | Image: Bill Pugliano/Getty]

Last October we advised you not to hold your breath for Daimler's Car2Go program to come to America. You can breathe again. If you live in Austin, Texas you'll be able to rent a mild hybrid Smart ForTwo by the minute this fall. Austin was chosen because of its university population and its concern for the environment.

Car2Go makes its fleet available on-demand, with a clear price structure, and you can keep the car as long as you wish. Those in the program access the vehicles by swiping a tag on their driver's licenses over a card reader on the car. As with the pilot program in Ulm, Germany the service will start in Austin with an initial fleet, expected to consist of around 200 Smarts that will be available to city employees first and then expand to public use at the conclusion of a trial period.


[Source: Canadian Driver]

Daimler Trucks North America has used the Mid-America Trucking Show in Kentucky to release its latest concept in commercial-grade hauling. The Innovation Truck concept takes the fuel-saving innovations introduced on the Freightliner Cascadia, already the most aerodynamic of the company's trucks, and turns them up to eleven.

Included in the aero tweaks are rear wheel fairings, underbody panels, a roof deflector and a front air splitter. Further, the side mirrors were replaced with cameras to reduce drag. Once up to speed, the Innovation Truck can lower its ride height using air bladders, further reducing fuel usage. Wireless tire pressure monitoring also sends data to an onboard navigation/infotainment screen in the cabin. Also present on the truck is Freightliner's new RunSmart Predictive Cruise control.

With such a focus on fuel savings, it's not surprising that Daimler has fitted the diesel powerplant with its BlueTec emissions after-treatment system, which injects a urea-based fluid directly into the exhaust to reduce nitrogen oxide emissions. Lastly, ParkSmart VHAC technology allows the truck's climate control systems to operate without running the truck's engine using electricity from a second bank of batteries.

Daimler says that the Innovation Truck concept is meant to "show our customers what they can expect from us in the near future," so we'll be on the lookout for menacing flat black semi trucks the next time we're headed out for a road trip.



[Source: Daimler]

Times may be tough, but that isn't stopping Daimler from having a bit of expensive-looking fun with its trainees... so long as there's an educational bent to it. What you see before you isn't an artful series of renderings, it's an actual time-warping fuel cell concept dubbed "F-CELL Roadster."

It took a year and more than 150 trainees to create, but the entire project involved using "junior employees", giving the company's up-and-coming employees a creative way to learn how alternative-fuel systems come together.

The F-CELL Roadster marries Benz Patent Motor Car stylings with 21st century tech wonderfully, including that legendary vehicle's general aesthetic and proportions, along with old-meets-new technologies like carbon-fiber buckets capped in hand-stitched leather and a drive-by-wire central control joystick.

The centerpiece, of course, is the Roadster's fuel cell powertrain, which has a power rating of 1.2 kilowatts, a top speed of 25 kilometers-per-hour, and a range of 350 kilometers. That means you'll have a long, slow trip, just like those adventuring motorists back at the turn of the century. Official press release posted after the jump.



[Source: Mercedes]

Last week, we told you how despite the downturn, Daimler is upping its investment in the state of Michigan, coming to terms with the city of Ann Arbor to build a new hybrid and electric R&D facility. Now, Automotive News is reporting that the automaker is expected to actually expand its Vance, Alabama production plant.

If the rumors are true, the Mercedes-Benz plant (which currently builds GL, M, and R class vehicles) will benefit from a $290 million investment that is to begin within 60 days. The news evidently leaked out after company officials contacted the Tuscaloosa County Industrial Development Authority about property and sales tax breaks (which it apparently received).

The expansion news comes at an odd time, as not only has the automaker's sales been flagging in the U.S. (down 20 percent in February year-over-year, admittedly much better than the market plunge of 41.4 percent), but sales of Vance-built SUVs in particular have fallen off, with Benz responding by reducing the plant's workforce.

Automotive News says the expansion effort won't be completed until 2011, but word yet on how much capacity this will give the plant (and what it will be used for) is not yet known.

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

The global auto industry is enduring its worst crisis in decades, and iconic companies with 100-year histories are being pushed to the brink. Luxury automaker Daimler is no different, with Mercedes-Benz sales down 17% in the past quarter and posting a loss of $1.95 billion in the fourth quarter alone. To help alleviate the a major cash crunch, Daimler has sold off 9.1% of the company to Abu Dhabi firm Aabar Investments PJSC.

Aabar purchased 96.4 million shares at a 5% discount under the stock price of 21.34 euros. Daimler shares were selling for 45 euros a piece before the rug was pulled out from under global luxury car sales. Both companies consider the partnership to be a long-term investment, as Daimler will need all the help it can get weathering brutal automobile sales slump. The two companies will also collaborate on electric vehicle development and Daimler will build a training center in Abu Dhabi. Thanks for the tip, Abdul!

[Source: Bloomberg | Photo: Torsten Silz/Getty]

The next step in cruise control comes courtesy of Freightliner semis and GPS data company NAVTEQ. Freightliner broadened communication between the cruise control and map data: the GPS transmits information on the road ahead up to a mile, and then the cruise control computes the best speed at which to cover the distance with the greatest fuel efficiency.

It's called RunSmart Predictive Cruise, and it employs slope data from the NAVTEQ system that has been collected on 200,000 miles of the most used truck routes. While RunSmart is looking for peak efficiency, it won't sacrifice speed; the system remains within 6% of the set speed. It's an available option on Freightliner's Detroit Diesel DD15-equipped Cascadia model with the 72-inch raised roof.

[Source: Daimler]