The Mercedes-Benz G-Class is a funky, but rugged luxury SUV from the German automaker, and it appears that it’ll be in production until at least the year 2020.

Mercedes-Benz’s parent company Daimler has come to an agreement with Magna Steyr to extend the production of its G-Wagen in Graz, Austria and was able to get more favorable conditions along with a better price from Magna. Daimler went so far as to threaten Magna that the company would move production of the G-Class to Hungary but it appears that Magna conceded to Daimler’s wants and production will continue in Austria.

The G-Class was originally designed to be a rugged off-roader and a light military vehicle for the German Army. The plant in Graz began production of the SUV back in 1979 and is currently the longest produced Mercedes-Benz in Daimler’s history. Last year, 7,200 G-Class vehicles were made, and this year the number is set to 8,500. Mercedes hopes to hit an annual production of 10,000 for their G-Wagen.

[Source: Automobilwoche]

Daimler got caught with their pants down this year when Audi passed Mercedes-Benz for the first time in history to become the world’s number two luxury car maker. That won’t be the case if they have their way next year.

According to internal documents obtained by Automotive News, Daimler is spurring Mercedes to increase output by 13 percent next year to more than 1.4 millon passenger vehicles. Those numbers don’t include their Smart or soon-to-vanish Maybach brands. With those figured into the mix, the company projects 1.52 million vehicles next year, though a Daimler spokesperson declined to comment on the goals.

“Mercedes-Benz is going on the attack,” Daimler board member for manufacturing and procurement Wolfgang Bernhard said in a press release. “We are securing our path to the top by extensively investing in the expansion of our high-performance production network.”

Mercedes fell to third place this year despite breaking company records by selling 1.25 million cars and SUVs.

[Source:Automotive News]

GALLERY: 2012 Mercedes-Benz C Class

[Source: Automotive News]

Ernst Lieb is heading to court, continuing to insist that he did not misuse Mercedes-Benz‘s funds improperly and that his dismissal back in October was unjustified.

Lieb’s five-year run as Mercedes CEO was cut short when he was dismissed for allegedly misusing $100,000 in company funds to upgrade a Mercedes-owned home in New Jersey. Lieb’s lawyer, Stefan Naegele, states that some of the improvements were ordered or approved by Daimler’s facility management. Those that weren’t on the list were called necessities with Naegele stating that the washer and dryer were replaced because they were not repairable and the home gym was refurbished because of water damage.

Naegele will be approaching the case with the premise that Daimler has fired dozens of former executives unfairly as a result of their “zero tolerance” crackdown on ethics violations. The American government had alleged that Daimler made improper payments of at least $56 million from 1998-2008 to at least 22 countries in order to obtain government contracts. In April 2010, Daimler paid out $185 million to settle the charges.

[Automotive News]

The long rumored Aston Martin-Daimler alliance appears to be taking shape, with a report in the Financial Times suggesting that the British sports car builder has approached Daimler with a request for assistance regarding engines, safety systems and other technology.

Aston Martin seems to be seeking independence from former owner Ford, which helped out greatly on the technological front. Aston Martin and Ford have an engine deal that lasts until 2013, and the Kuwaiti consortium that now owns Aston has been previously rumored to have approached Daimler regarding a possible collaboration with their Maybach division.

[Source: Bloomberg]

Remember Maybach? Of course not, we’re in a recession. But back in the day, when the grass was green and birds sang sweetly in the forests, Mercedes’ experiment with ultra-luxury was quietly shuttered after people decided that two-tone paint wasn’t compelling enough a reason to buy what looked like a melted S-Class owned by Simon Cowell.

So now, Mercedes-Benz is quietly weighing their options. They could turn Maybach into a sub-brand of Mercedes, like AMG or Designo: more in line within the company than as a separate division. They could ask Aston Martin to build the next Maybach—the Brits have already created four concepts based on the S-Class for Benz’s consideration. Or, they could take it out back and shutter it.

Dieter “Dr. Z” Zetsche, CEO of Daimler, admitted that a partnership with Aston Martin was in the talks. And, the Daimler board need to reach a conclusion on Maybach by July 1st, the next time they are scheduled to meet. Spokespeople for both companies refused to comment.

Hey, after all, nouveau riche Beijingers and oil sheiks have needs, too.

[Source: Automotive News]

The slow-selling luxurious Maybach may be in trouble and we will find out by July 1. Mercedes parent company Daimler AG is trying to decide what to do with the Maybach company after slumping sale issues. Daimler will either axe the car or possibly partner with British car-maker Aston Martin for a second-generation car.

According to CEO Dieter Zetche, “there is a higher likelihood to come to a positive decision” for a new-generation of Maybach if a partner joins production. Zetche did confirm that Daimler has been discussing a partnership with Aston Martin and that there are no other prospects. A concept for the next-generation Maybach has been designed but a final decision has not been made, according to Zetche. Daimler invested over $1 billion on development for the Maybach, but ”it was not a good investment for a small-volume vehicle.”

Slow-selling would be an understatement. Only 157 Maybachs were sold last year, according to IHS Automotive, far short of the Mercedes- Benz goal of 1,500 units.

If Aston Martin produces the Maybach, the British automaker would be inclined to buy engines (V8 and V12) and transmissions (seven-speed automatic) from Mercedes-Benz but would implement them into other Aston Martin vehicles.

GALLERY: 2011 Maybach Lineup

[Source: Automotive News]

The struggling Smart brand was set to get a potential savior this year with the introduction of a new four-door based on a Nissan platform. That, however, will not happen now, as part of a new agreement where Smart and Mercedes parent company Daimler has taken back distribution of its mini-car from the Penske Automotive Group.

There are two main reasons behind the change, the first is for simplicity’s sake with the U.S. the only market in the world where Smart and Mercedes operate independently. The more important reason, however, is fuel economy, with Mercedes eager to bolster its CAFE numbers with the 41-mpg Smart fortwo.

After initial sales of 24,622 cars in 2008, Smart managed to move just 5,927 vehicles last year. While dropping the planned Nissan model does seem like a bad move, it shows signs of a long-term plan with Mercedes willing to deal with low sales in the short term in order to properly built up the Smart brand.

In the mean time, however, the future is bleak for Smart with 21 dealers set to loose their franchise rites, while the remaining 58 will be forced to soldier on with what is essentially one model (the ForTwo), as well as an ultra-niche market electric version of the car.

[Source: Automotive News]

Although the Smart ForTwo hasn’t been warmly received by American buyers, there is hope for the quirky maker of diminutive city cars, as parent company Daimler is backing the brand with new products and utilizing their alliance with Renault-Nissan to give the lineup a boost.

A Smart representative confirmed that a four seat model will arrive sometime in the future, a vehicle that will doubtlessly expand Smart’s appeal to a much broader customer base. While this car will arrive in a few years, a 5-seater hatch with 5-doors reportedly based on the Nissan Micra is set to bow in the last quarter of 2011. A revised ForTwo, which will share a jointly-developed Renault-Nissan platform will also debut, but on an unspecified time frame.

[Source: Autoblog]

If you work for the Daimler corporation, you’re about to get a nice bonus from the company for doing absolutely nothing. As part of their 125th anniversary celebrations, all 260,000 employees of Mercedes-Benz‘s parent company will be getting a bonus to celebrate the milestone, with the total amount estimated at 100 million euros.

The average bonus is expected to be about 1000 euros per worker, or $1370 US, depending on seniority and other factors. Workers in Germany will also get a 3150 euro bonus, or $4315 , to celebrate Daimler’s successful financial year in 2010.

[Source: Detroit News]

It’s no secret that the revival of the Maybach brand by Mercedes parent company Daimler has been a flop. Perhaps it’s because of how much the cars shared with their S-Class counterparts, but apart from the odd Russian oligarch, the world’s wealthiest folks have decided to stick with faithful British brands like Bentley and Rolls-Royce when it comes to their ultra-luxury needs.

The ability of British brands to built true luxury cars has apparently not gone unnoticed by Daimler and according to a report by the Financial Times, Daimler may source Aston Martin to build the next generation of Maybach models.

In exchange, Aston Martin would reportedly get access to engine technology from Mercedes-Benz, something AM desperately needs as its 6.0-liter V12 engine (used in almost every vehicle it sells) is quickly becoming outdated.

A Daimler spokesman has denied the report, but did comment that the lines of communication between the two automakers is open. This comes as no surprise as Aston Martin’s Lagonda concept (which debuted at the Geneva Auto Show two years ago) was based on the Mercedes GL platform.

While still mostly a rumor, the story doesn’t have any obvious holes in it with Daimler eager to partner with other automakers (including recent agreements with Renault/Nissan/Infiniti), while Aston Martin is no doubt eager to find a large partner to offset costs, especially with rivals like Ferrari being owned by Fiat and Lamborghini by Volkswagen.

[Source: Reuters]