+++ Mercedes – AMG is on track to record sales of 100,000 cars in 2017, for the first time in the company’s history. The German high performance brand came close in 2016, recording record sales of “almost 100,000 units”, according to Mercedes-AMG Chairman of the Management Board, Tobias Moers. In fact, the number was 99,235, which represented 44.1 percent growth. “We offer our customers the most comprehensive product portfolio of all time, with more than 50 different models ranging from the A-Class right up to the S-Class”, continued Moers. “Clearly, this is being rewarded. In 2016, we achieved record sales figures of almost 100,000 units. And in our anniversary year, we again managed a lightning start: with double-digit growth rates in the first quarter. That makes us pretty optimistic for the rest of 2017. Our aim is to clearly pass the 100,000 mark”. Mercedes-AMG has certainly enjoyed rapid growth in recent years, with the A45 hero trim attracting new and, importantly, younger customers (with a so-called ‘A40’ model expected to join the range soon), a fact not lost on Moers. “There has been strong demand for our ’43’ models, for example, which are aimed at new target groups. The same applies to our compact ’45’ models,” he said at a media briefing at the Nurburgring. “They have made a long-term contribution towards inspiring new AMG customers and achieving high conquest rates”. +++
+++ 18 years. That’s how long it’s been since BMW had a model called the 8 Series. It seems like a lifetime ago, but fans of the old 8 Series will probably tell you they still think about one of BMW’s most iconic models to this day. I know I fall in that category, which isn’t all that surprising considering my well-known fascination for the old 8er. But that was then and this is now. The old 8 Series may be a sought-after collectible now, but BMW is determined to bring some shine back to the name with the introduction of the new 8 Series Concept. BMW’s intentions for the 8 Series name is already known. It plans to bring it back to replace the outgoing 6 Series as the company’s next flagship model. It’s a great plan from all angles, one that should give some of Bimmer’s biggest rivals enough reason to pause and look over at Bavaria to see what it’s up to. I imagine Mercedes is doing just that because the return of the 8 Series means that the S-Class finally gets the fierce rival it’s been missing for close to two decades. The question now is whether BMW’s 8 Series Concept has the goods to compete against the Mercedes S-Class Coupe. Unfortunately, we’re no closer to finding an answer to that because the 8 Series isn’t scheduled to hit production form until 2018. What we do have now, thanks to BMW, is a concept that’s striking enough to dissect. What better way to do that than to put it up against Mercedes’ own flagship luxury coupe. It’s come to this, hasn’t it? The arrival of the BMW 8 Series is expected to shake-up its segment and of all the cars in said segment, the Mercedes S-Class Coupe will be the one that’s going to be in the 8er’s crosshairs. To be clear, we all knew that this was coming, and now that we’re close to finally seeing these two titans square off, it’s time to see how the 8 Series compares to the S-Class Coupe’s gorgeous styling. Yes, I’m a big fan of the S-Class Coupe. It’s elegant and classy, yet it also possesses that sporting quality that Mercedes is known for. There’s something to be said for seamless combining all those elements together without one particular element standing out from the others. The S-Class accomplishes that, and in my mind, it’s something that BMW should pay careful attention to when it’s time to roll out the production 8 Series. I’ll be honest; I’m a little underwhelmed on how the 8 Series Concept turned out. Maybe my admiration for the old 8 Series came rushing back to the surface, but there’s something about this concept design that doesn’t make as emotionally invested as I am on the S-Class Coupe. The concept’s front section, in particular, looks a little too aggressive for a car that’s supposed to be BMW’s new flagship model. I’d be a little more receptive to it if this turned out to be the front section of the new BMW sports car that the company is developing with Toyota, but not as much with the 8 Series. The long and short of it is this. A flagship model should imbibe all of the qualities of an automaker, particularly when it comes to its design. Mercedes did a remarkable job on the S-Class Coupe by putting all those pieces together. You can say the car is sporty, luxurious, class, or elegant and you wouldn’t be wrong because the coupe really is all of those things. The 8 Series, on the other hand, looks as if a lot of time was spent focusing on making it as aggressive as it does. Some people may like it and I wouldn’t begrudge them for feeling that way. But in my end, there’s an absence of aesthetic balance on the 8 Series that all flagship models are supposed to have. The tricky thing with the BMW 8 Series’ interior is that it’s technically still a concept so there’s no telling how much of it will translate into the production model. But since the concept is all that we get for now, it’s what we’re going to use to compare against the interior of the S-Class Coupe. In so many words then, there’s a world of difference between the two and for what they’re both worth, I can’t decide which one I like better. I’m not going to bother with the premium materials and luxury amenities because both models have them in spades. It’d be like picking between a frankfurter or a Hungarian sausage. You can’t go wrong with either of the two. What I will say in terms of the dramatic difference between the two cabins is the layout that BMW and Mercedes adopted. Bimmer, for its part, presented the cabin of the 8 Series Concept to be as clean as clean can be. Pretty much everything you need in terms of fun ctions can be found on the center console. There’s no wasted space since everything is arranged so neatly. Remember what I said about a flagship model’s responsibility to evoke the automaker’s unfiltered emotion? The interior of the BMW 8 Series has that and it’s a beautiful thing. Let’s hope then that the production version follows this template. On the other hand, the interior of the S-Class Coupe is busier in the sense that there are way too many buttons and switches scattered throughout the cabin. Part of its is because of necessity since the floating dashboard configuration rids it of a center stack where all those buttons could have been placed. The separation of the infotainment display is even more prominent on the Mercedes. Some people won’t think too much of it (it really isn’t an issue unless you’re as OCD as I am) but that layout does rob it of the clean and streamlined look that the 8 Series Concept’s center console and stack possess. When you’re talking about cars like the BMW 8 Series and the Mercedes S-Class Coupe, power and performance aren’t the most important things. But, (and this is a very big “But!”) they’re just as important as any other feature on both models. Part of it is because of the automotive mantra “numbers sell.” The higher the number, the more people will gravitate towards it. On that end, we already know what the Mercedes S-Class Coupe is capable of. The range-topping, non-AMG, S550 model prominently features a 4.7-liter biturbo V-8 engine that produces 460 horsepower and 700 Nm of torque. The power output may not sound as impressive when you consider that some Mercedes models that sit below the S-Class Coupe have more power than the flagship. Rest assured though, whatever it lacks in outright horses, it more than makes up for in torque, which really is the more important number for a car that belongs in the flagship segment. Put those numbers to good use then and you’re looking at a luxury coupe that can blitz its way to 100 km/h from an idle position in just 4.5 seconds before setting off and peaking at an electronically limited top speed of 250 km/h. The case for the BMW 8 Series Concept’s power and performance capabilities is a little trickier because BMW itself hasn’t revealed anything worth mentioning. For now, what we can do is assume that the 8 Series will share some type of engine with the 7 Series, which would make more sense than BMW developing a new engine for the 8er. There are plenty of engines to choose from then, but the most likely candidate for the range-topping, non-M 8 Series (presumably called the 850i) is the 4.4-liter twin-turbo V-8 engine that packs 450 horsepower and 550 Nm of twist. It falls a little short than what the S-Class Coupe is capable of, so expect BMW to do a little tweaking and squeezing on its V-8 to at least come a little closer to what Merc has on offer for its luxury coupe. Even if BMW chooses to keep its hands in its pockets and let its V-8 produce what it already can, the engine shouldn’t have an issue with its 0-to-100 km/h time since I assume it will take around the same time (4.5 seconds) as the S-Class Coupe. Likewise, the 850i’s top speed should also be electronically limited to 250 km/h. Conclusion: It’s no secret that BMW is preparing the 8 Series to go up against the Mercedes S-Class Coupe. There’s no mystery behind that. What’s telling at this point is that BMW appears to be taking a slight detour on its strategy by presenting the 8 Series Concept as more of a performance car than a luxury one. I know the balance between the two is delicate and the 8er is still, technically, a concept, but I still find it a little curious why the 8 Series looks as aggressive as it does compared to what the industry’s expectations were. Make no mistake, it’s not a bad strategy by any means; it’s a just different one from what we thought it was going to be. The question moving forward is whether or not BMW sticks to what it has with the 8 Series Concept or if it still has a few tricks up its sleeve. As it stands though, if somebody asked me to pick between the two, my money would go to the Mercedes S-Class Coupe because it better embodies what a flagship luxury coupe should be like. +++
+++ BMW, the German luxury car maker, is slowing or halting production of certain models in response to a shortage of parts caused by delivery problems from supplier BOSCH . BMW is slowing or halting production of certain models in response to a shortage of parts caused by delivery problems from supplier Bosch. The hiccups in the normally smooth operation show how dependent manufacturers are on a global, smoothly running supply chain. Even small disruptions anywhere along the line can cascade into delays in getting the company’s big money-making products off the assembly line and into showrooms. In BMW’s case, the culprit is a “Lenkergetriebe,” or steering gears manufactured by Stuttgart-based auto-parts giant Bosch and used in BMW’s 1-Series, 2-Series, 3-Series and 4-Series. “Our supplier Bosch is not currently able to provide us with a sufficient number of steering gears”, said Markus Düsmann, BMW board member in charge of purchasing and supplier network. Bosch, in turn, said the trouble arose when a supplier in Italy experienced difficulties in delivering the casing for the steering gears. Bosch declined to identify the supplier. As a result of the shortages, production is restricted at several BMW plants in Germany, the Tiexi plant in Shenyang, China, and at the company’s plant in Rosslyn, South Africa, a BMW spokesman said. “Automotive value chains are international. An interruption in delivery of parts from a partner in Europe can therefore also have implications in China”, said Düsmann. “The vehicle is not complete until all parts, most of which are supplied ‘just-in-time’, are installed. It is, therefore, understandable how a missing part, even if only a small one, as in this case, can have a major impact”. Analysts at Equinet, a brokerage, said the costs to the company were likely manageable unless the interruption of production continued for several days. “Bosch is working urgently in a task force together with BMW and the supplier to relieve the supply squeeze as soon as possible and keep the impact as limited as possible”, Bosch said in a statement. BMW said it doesn’t know the extent of the financial damage or impact on production and sales caused by the break in production. A spokesman said the company hoped to restart assembly at the plants next week, but wasn’t certain that would be possible. BMW’s plant in Leipzig in eastern Germany has been shut down since Friday. Plants in China and South Africa have brought forward planned production breaks and extended their duration. +++
+++ Riding on the boom of eco-friendly vehicles, Hyundai’s ELECTRIC car Ioniq was the most registered EV in South Korea as of last April, industry data showed. The total number of EVs registered here reached 13,812 units across 13 models as of last April, out of which the Ioniq EV stood for 40.4 percent, totaling 5,581 units, according to data from the Korea Automobile Manufacturers Association. South Korea’s EV market lags behind in size compared to the 3 big auto markets (the US, the EU and China) but it is expanding at a fast pace. In 2011, a total of 344 EVs were registered here and they surpassed 10,000 units for the first time last year, according to the KAMA. “Many speak highly of the Ioniq’s design and performance. Also, with government subsidies, it comes with a reasonable price tag of around 20 million won”, said a spokesperson of Hyundai Motor Group. The Ioniq EV has a price range of 38.4 million won ($34,250) to 43 million won. The Ministry of Environment currently offers a subsidy of 14 million won per EV purchased, while the Seoul City government provides 5.5 million won. The amount of subsidies offered differs by provincial government. Soul EV, an electric car model made by Kia, South Korea’s second-largest automaker, claimed the No. 2 spot with 2,575 units, the KAMA said. This was followed by Renault Samsung Motors’ SM3 Z.E. sedan (Renault Fluence ZE), a pure electric model of the flagship SM3 sedan, with 2,547 units. Among foreign automakers, BMW’s i3 came in first place with 827 units, while the Chevrolet Bolt (Opel Ampera-e) compact electric car fell far behind with 16 units, data showed. South Korea’s EV market is expected to continue expanding, as the new administration led by President Moon Jae-in has vowed to boost the country’s EV market in order to tackle high levels of fine dust and foster a new economic growth engine. The Ministry of Trade, Industry and Engery said last July that it plans to increase the number of EVs here to 250,000 units by 2020. +++
+++ HYUNDAI said Tuesday it will unveil its brand new subcompact SUV in South Korea on June 13 as it released a teaser image highlighting the car’s low silhouette and wide stance. South Korea’s largest carmaker by sales is set to make its foray into North American and European markets this summer with the Kona. Hyundai said the B-segment SUV market, which its new vehicle falls into, has been attracting growing number of customers globally. The home market for SUVs grew from 12,000 units in 2013 to 107,000 last year. Industry watchers expect the market to surpass 120,000 by 2022. “Kona was built with a height that is higher than passenger vehicles of same class but lower than conventional SUVs”, the automaker said, describing it as a “perfected SUV” that offers a excellent mix of steadiness and visibility. The Kona will feature the first combiner head-up display on any South Korean-made SUV. In a step forward for vehicle HUDs, the combiner system mirrors information on the instrument panel on a separate glass disc instead of on the windshield. Hyundai said it plans to add more information to the display system on top of its navigational functions. The Kona will complete Hyundai’s SUV lineup that has the Tucson, Santa Fe and the larger Maxcruz. +++
+++ Stock issues of key models are impacting MERCEDES sales this year, but the German luxury car-maker insists that it will exceed last year’s record haul. Massive global demand for the popular GLC mid-size SUV, and its GLC Coupe sibling, has pushed the Bremen, Germany factory to capacity and created a waiting list. Mercedes will start building the GLC for the US market at its Tuscaloosa, Alabama plant later this year and it has already confirmed that it has outsourced some production to auto manufacturer, Valmet, in Finland, kicking off this year. “There will be changes with regards to production once the US start building their own”, a spokesman said “Though it is not the biggest seller for them, it will take some pressure off. GLC demand globally has peaked. If you walk into a dealership for GLC now you would probably have to wait 4 to 6 months. You know what that segment is doing. It is very frustrating”. He said he was unsure when the stock would start flowing more freely, but added: “We will be in a better position next year”. The spokesman would not be drawn on an overall sales target for Benz this year and said the fact that there are no major volume model launches in 2017 could have an impact. “It comes down to stock on a few models”. +++
+++ The upcoming ROLLS-ROYCE SUV, dubbed ‘Project Cullinan’ has been confirmed for a 2019 debut, the company has revealed. While the British luxury marque refuses to call it something as pedestrian as an SUV (rather referring to it as an “all-terrain, high-sided vehicle”), the new Rolls-Royce will aim to become the most opulent and desirable high-riding vehicle on sale when it launches sometime during 2019. Don’t think the Cullinan will chase volume with reduced pricing, however. Ian Grant, global client sales manager for Rolls-Royce’s Asia Pacific division, says the new model will be positioned towards the top of its range, much like the Phantom; the next-generation of which is scheduled to be revealed later this year. “We don’t chase volume. We’re not going smaller, we’re not going cheaper”, he said. “Larger is certainly the way we’re heading”. The Cullinan will offer a new four-wheel drive system, along with all-aluminium underpinnings (to be shared with the next Phantom) that will not only save weight, but allow the company to create a “truly athletic Rolls-Royce”. Like the new Phantom, expect the Cullinan to bring plenty of up-to-date features and technologies, like a fully-digital instrument cluster and active safety systems, along with the highest-quality leathers, fabrics, metals and woods to ensure first-class levels of luxury and comfort. +++
+++ VOLKSWAGEN Group CEO Matthias Müller has admitted that the near-autocratic corporate structures that lied about diesel emissions and shattered the company’s reputation is proving hard to break apart. A report from Reuters this week contained some remarkably frank quotes from the former Porsche chief, who was appointed Group chief shortly after the diesel scandal broke in September 2015. “There are definitely people who are longing for the old centralistic leadership”, Müller said during a discussion with business representatives. “I don’t know whether you can imagine how difficult it is to change the mindset”. It’s no secret that there was an ingrained highly deferential attitude to authority in Wolfsburg, led by an aloof command-and-control culture headed-up by former chiefs Martin Winterkorn and Ferdinand Piëch. Critics have long said that this lack of openness may have contributed to the diesel emissions cheat code scandal; something that gained legs when Müller immediately made it a priority to decentralise power and create a more humble and open corporate culture and face when he took the reins. But Müller admits to having a hard time. “You are permanently caught in a field of tension based on the question of how much decentralisation can the company tolerate and how much can it not”, he was reported as saying. “The process of change has been started but it’s a process. One now has to endure this, also as chief, that some things go wrong and some things remain unsuccessful while other things are successful”. More sensationally, Reuters cited VW sources as saying that many mid-level managers thrived under pre-scandal non-accountable arrangements that allowed them to essentially shift responsibility to others. Many managers are also alleged to be focusing on protecting themselves rather than providing leadership in their departments; leadership needed as Volkswagen embarks on one of the world’s most ambitious electrified vehicle programs. “The search for those who made mistakes always took precedence over the search for the mistakes”, one VW source said. “That mindset is still there”. Müller said it previously took him 3 years as CEO of Porsche around 2008-09 to establish a new culture for its workers and shift the focus back to the product. “Of course there are anxieties, it’s not an easy undertaking to overcome Volkswagen’s management hierarchies”, he said. “The only question is how long will it take?” +++