German automaker Daimler AG and French car manufacturer Renault have reportedly agreed on a new business strategy that will see both parties create a global small-car alliance, sharing development costs and technology. Details of the deal are set to be announced tomorrow in Brussels with Daimler CEO Dieter Zetsche and Renault-Nissan Boss Carlos Ghosn taking part.

According to a report by Automotive News Europe, the management boards for each automaker have agreed to the partnership.

Currently Daimler, parent company to Mercedes-Benz and Smart, is looking to introduce new A-Class and B-Class models, as well as bring the B-Class to the U.S. New Smart models are also a part of future plans. Meanwhile, Renault, which owns Japanese automaker Nissan, launched a new sub-compact Micra (above), which is slated for global sales.

The move is just the latest partnership to emerge in a post-recession auto industry, where automakers are looking not only for ways to reduce research and development costs, but to partner with companies with expertise in other areas. Earlier this year, Volkswagen and Suzuki announced a similar partnership, while Italian automaker Fiat took control of Chrysler in a bid to reduce costs and expand into new markets.

[Source: Automotive News]

Taking the idea of a concept car to a whole new level, Mercedes-Benz has just unveiled the new Mercedes-Benz Design Concept at the Detroit Auto Show. Called “abstract” by Mercedes CEO Dr. Dieter Zetsche, we couldn’t agree more. In fact, it’s almost like they took a DTM C-Class with it’s imposing front grille that hugs the ground and gave it to Jabba the Hut for a little Han Solo-style cryogenic freezing.

Regardless, it’s meant to give a glimpse at the future of Mercedes-Benz designs, and is described by the company as a sculpture. “It represents a vehicle rising gently from a level plane – as if formed from liquid silver, or like a shimmering cloth draped gently over a new form,” reads the Mercedes press release. “Clear, contoured surfaces are framed by crisp arcs, lending the sculpture an organic appearance that is both retrospective and forward-looking.”

Mock it we may, but the aggressive grille and massively flared fenders foreshadow an impressive new look for the already imposingly luxurious Benz lineup.

GALLERY: Mercedes-Benz Design Concept

Official release after the jump:

Mercedes-Benz Design

Automobile design as an art form – sculpture

* A gem of automotive artistry
* Artistic imagination and the forces of nature

Alongside the E-Class Cabriolet and the SLS AMG, Mercedes-Benz is also treating visitors to the 2010 North American International Auto Show in Detroit to a stunning automobile sculpture. It represents a vehicle rising gently from a level plane – as if formed from liquid silver, or like a shimmering cloth draped gently over a new form. Clear, contoured surfaces are framed by crisp arcs, lending the sculpture an organic appearance that is both retrospective and forward-looking.

The sculpture is highly sensuous – an exciting eye-catcher. But it also reinterprets the notion of the car as an art form. “For us, car design is a process of artistic, aesthetically sensuous creation”, says Head of Design Prof. Gorden Wagener. “Mercedes-Benz designers translate their artistic inspiration into the modern Mercedes-Benz design language, which combines excitement with harmony, style with passion. Mercedes-Benz design is clear, calm and coherent, but still emotional and highly sensuous. Mercedes-Benz is the brand best able to present automobile design as an art form in an authentic way.”

As an extraordinary piece of automotive art, the sculpture also uses its flowing, silk-like shroud and the resulting pattern of folds to symbolize the positive and negative curved surfaces of the modern Mercedes-Benz design language. This is characterized by dramatic surfaces with beautifully defined proportions defined by fine lines that begin gently, evolving into crisp contours.

Viewing the sculpture can conjure up many associations. Perhaps a sand dune or a snowdrift; a viscous substance like hot lava or mercury solidifying into an automobile. The sculpture reflects the creative power of nature – flowing elements evolve as the form of a new automobile emerges upwards, making its outline visible with contour and dimension. It shows how natural forms and lines come together to form a sensuous structure on which curving, sinuous lines create emotional contours. This is an aesthetic transformation, shaped by nature and the artistic imagination of the designer.

Inspired by the forces of nature and artistically interpreted, the natural origin of this sculpture also symbolizes the key values of the Mercedes-Benz brand – intelligent technology and quality, sensuous beauty, style, dynamic character and innovative strength for well over a century; coupled with respect for mankind and nature. Mercedes-Benz is one of the few automobile companies able to communicate this credibly as a work of art.

This is also reflected in the shining Alubeam silver paint finish, which interacts with the contours of the sculpture to create a multi-faceted interplay of light and shade. Moreover, this Mercedes color is a reference to the glorious heritage of the Mercedes-Benz brand, while also conjuring visions of the day after tomorrow and the promise of future innovations.

This evocative sculpture was created by Mercedes-Benz Design to show the culture and creativeness of its designers in its five international design studios in Germany, Italy, the U.S., Japan and China – to further their artistic ideals and develop a design for Mercedes-Benz. “Many of our designers come from artistic families, carry artistic ambitions in their genes, so to speak, and found their way into automobile design via their artistic talent,” is how Prof. Gorden Wagener explains the potential.

With this sculpture, Mercedes-Benz provides an insight into the thinking and perceptions of its team of designers and model makers. Although a design idea initially takes shape on paper, it is subsequently modeled in clay. This is sculptural work in its purest form, and highly suited to finding new shapes and creating sensuality. This is how automotive art is created, with enormous attention to detail that also includes interior design and materials.

Designing and modeling at Mercedes-Benz Design has a great deal to do with creativity and artistic work – though art for art’s sake is certainly not the intention of this sculpture! The form of the automobile, presented here in such an artistically exaggerated and cryptic way, is only vaguely perceptible. Nonetheless, the basic proportions challenge the onlooker to decode which future, real-life automobile may ultimately emerge from this creative process. Feel free to speculate, but also to admire.

Dr. Dieter Zetsche, CEO of Mercedes-Benz parent company Daimler has said that the company will announce a small car partner mid way through 2010. Daimler has been in talks with French automaker Renault, with rumors that the two may partner on a new line of small cars and electric city cars. This partnership could also help produce future Smart models (including a 4-door) as well as future versions of the B-Class and A-Class (shown above).

Recently Renault’s CEO, Patrick Pelata confirmed discussions are ongoing saying that, “Yes, we are discussing serious matters with Daimler. Carmakers are holding discussions with each other. There are a lot at the moment.”

There is a possibility that the talks with Renault could be over more than just small cars, as industry consolidation seems to be a common trend as of late. Along with Volkswagen’s acquisition of Porsche and its purchase in a share of Suzuki, rumors have pointed towards Mitsubishi teaming up with French automaker Peugeot Citroen. Meanwhile Mazda, recently cut off from Ford’s hybrid technology, has cozied up with Toyota to develop a new line of hybrids.

Pelata has confirmed that a potential Daimler/Renault deal could see the two automakers co-develop and share engines, transmissions and even vehicle platforms.

[Source: Automotive News via Autoblog, LeftLaneNews]

Mercedes will introduce at least one small car to the U.S. in 2012, doing a 180 on a past decision to stick to larger vehicles in order to enforce the brand’s high-end image. The news comes directly from CEO Dr. Dieter Zetsche, in an interview in the Wall Street Journal. The car would compete with vehicles like the BMW 1 Series, Audi A3, Volvo C30 and MINI Cooper – as well as a possible compact luxury vehicle from Lexus based on the LF-Ch concept.

Analysts have suggested the move is the result of lessons learned from the recent economic downturn, with sales of larger luxury vehicles and SUVs taking a significant hit, while the share of the market made up by compact and subcompact vehicles has grown. The introduction of a smaller and more fuel efficient model in the Mercedes lineup in the U.S. would also help the manufacturer meet increasingly strict CAFE regulations.

In the past Mercedes had decided to introduce the B-Class to the U.S. market but canceled plans when an unfavorable Euro-to-dollar exchange rate made the car’s business plan unsound. (The B-Class was, however, introduced in Canada, where vehicles are sold for significantly more).

The new Mercedes small car will be based on an all new platform that Mercedes says is much cheaper to manufacture, making the Euro-to-dollar exchange rate less of a factor. It is not yet known if the car will follow in the B-Class’s layout of being a premium-people mover or if Mercedes will opt to build a more sporty offering to better compete with cars like the 1 Series or MINI Cooper.

Over the past two years, Mercedes has introduced three concepts based on the B-Class architecture, including a hydrogen fuel-cell concept, a hybrid concept and an electric car concept. It’s likely that the future Mercedes small car platform will bring one of more of these concept car technologies into production.

[Source: The Wall Street Journal]

Unlike traditional compacts these cars can be costly; the Mini goes for as much as $34,000 depending on optionsDaimler’s tentative move comes as buyers in Europe and the U.S. are increasingly redef

As rumored, Mercedes-Benz has decided to part ways with McLaren after 15 years as partners in Formula 1, opting instead to buy a majority stake in the Brawn GP team. The new team, named Mercedes Grand Prix, will run in the 2010 F1 season, keeping much of the Brawn team, including team principal Ross Brawn.

The Brawn GP team entered the 2009 Formula One World Championship as serious underdogs, using the underperforming Honda cars. And yet, the team managed to clinch both the Constructors’ and Drivers’ World Championships.

“We look back on 15 successful years of great collaboration with McLaren; in that time, we won four world-championship titles and finished ten times as runner-up in the drivers’ and constructors’ rankings,” siad Norbert Haug, VP of Mercedes-Benz Motorsport. “Since the first victory in the 1997 Australian Grand Prix, the modern Silver Arrows have achieved a total of 60 victories in 223 races to ensure that our brand symbol, the star, stands for the greatest successes in Formula 1. We thank our partner and will continue to work with McLaren based on an excellent partnership.”

Daimler AG boss Dr. Dieter Zetsche thanked McLaren stating that, “For the benefit of both Mercedes and McLaren, we will continue our partnership cooperation in future. We will be rivals on-track but, off-track, we will cooperate with McLaren and the other teams in order to create the best possible product for spectators worldwide.”

The partnership between the two companies is much more strained than that, however, as Mercedes has also announced it will let McLaren buy back the 40 percent stake it now holds. That transaction should be completed by 2011, fully dissolving the Mercedes McLaren business relationship.

Official release after the jump:

PRESS RELEASE

2010 in Formula 1: Mercedes Grand Prix

Daimler AG and McLaren Group change their form of cooperation

November 16, 2009 – Stuttgart– Mercedes-Benz will enter the Formula 1 World Championship with its own team, beginning with the 2010 season, and Daimler AG and McLaren Group will change their form of cooperation with effect as of 13 November 2009. This was announced by Daimler AG today.

Daimler AG together with Aabar Investments PJSC will take over 75.1 per cent of the Brawn GP team, with Daimler taking 45.1 per cent and Aabar 30 per cent. The rest of the 24.9 per cent will remain with the current stakeholders. With 9.1 per cent, Aabar is the biggest single shareholder of Daimler AG. This transaction is subject to the approval of the EU and the Swiss cartel authorities.

The background to this decision are the new terms and conditions for Formula 1. The “Resource Restrictions” set by FOTA and FIA effectively limit expenditure for the design, construction and running of the racing cars. In addition, there will be a significantly higher income available for a Formula 1 team generated by the commercial rights of the racing series following the signing of the new Concorde Agreement.

The partnership between McLaren Mercedes has been in place since 1995 and ended its 15th joint Formula 1 season in 2009. The change to the form of cooperation is taking place by mutual agreement. Mercedes-Benz and McLaren will continue to co-operate with each other and the supply of engines could continue until 2015.

The McLaren Group have set themselves new targets, especially in the automotive sector, and Daimler understands and respects these new strategic objectives. For this reason, it has been agreed that the buy-back by the McLaren Group of the 40 per cent McLaren share owned by Daimler AG will be completed by 2011.

By taking this decision, Mercedes-Benz resumes its marvellous motor racing history on the 75th anniversary of the Silver Arrows, the world’s most unique racing cars. Mercedes wants to continue the tradition in the style of these flawless Silver Arrows, which put their stamp on each era by winning the majority of the races they competed in.

“Mercedes-Benz is the most valued and best-known premium automotive brand in the world. This brand looks for competition of the utmost quality in all relevant fields in order to continually improve its performance in the face of such new challenges”, explains Dr. Dieter Zetsche, CEO of Daimler AG and Head of Mercedes-Benz Cars.
“Due to the new Formula 1 environment, we will face the competition in future on the most important motor sports stage with our own Silver Arrow works team.

“Our new Silver Arrow Formula 1 team is a great sporting and technical challenge and we will tackle this with sporting spirit and full of enthusiasm.”

Mercedes-Benz will restructure their Formula 1 programme and work hard to achieve further savings, going beyond the already completed steps for significant cost reductions and improved efficiency.

Since 1995, the beginning of the partnership, McLaren and Mercedes-Benz have competed in 256 Grand Prix events and have achieved 60 victories. In 1998, 1999 and 2008, the British-German team won the drivers’ World Championships, as well as the World Constructors’ Championship in 1998. The McLaren Mercedes team became runner-up in the World Championships ten times, with five times in the drivers’ and constructors’ rankings respectively.

After winning the drivers’ title with Lewis Hamilton last year, Vodafone McLaren Mercedes finished third in the World Constructors’ Championships this year. The 2008 World Champion won two races with his current car, the MP4-24, achieving a first historic victory with the brake energy-recovery system, KERS Hybrid. No other driver scored more points in the last eight races from the season’s total of 17 races than Lewis Hamilton.

“I want to thank McLaren for a successful collaboration over the last decade and a half”, says Dr. Dieter Zetsche, CEO of Daimler AG and Head of Mercedes-Benz Cars. “For the benefit of both Mercedes and McLaren, we will continue our partnership cooperation in future. We will be rivals on-track but, off-track, we will cooperate with McLaren and the other teams in order to create the best possible product for spectators worldwide.”

“We look back on 15 successful years of great collaboration with McLaren; in that time, we won four world-championship titles and finished ten times as runner-up in the drivers’ and constructors’ rankings,” states Norbert Haug, Vice-President Mercedes-Benz Motorsport. “Since the first victory in the 1997 Australian Grand Prix, the modern Silver Arrows have achieved a total of 60 victories in 223 races to ensure that our brand symbol, the star, stands for the greatest successes in Formula 1. We thank our partner and will continue to work with McLaren based on an excellent partnership.”

Mercedes Grand Prix, the management team of the former Brawn GP team, will continue to work under the leadership of Ross Brawn, who will continue in his well-known role. The Formula 1 team, as well as the engine team of Mercedes-Benz High Performance Engines, will be co-ordinated by Mercedes-Benz Motorsport, headed by their Vice-President, Norbert Haug.

“Brawn GP has been through an incredible journey over the last 12 months. From fighting for our survival to forging a strong relationship with Mercedes-Benz High Performance Engines, winning both the Constructors’ and Drivers’ World Championships, and now accepting Daimler and Aabar’s offer to buy our team, which will secure its future”, Team Principal Ross Brawn looks back on a difficult beginning of the year which eventually turned into an extremely successful season.

“Both I and my fellow Directors at Brawn GP are incredibly proud of our staff, drivers and everyone associated with our team and thank them for their commitment, outstanding teamwork and their focus on achieving results in sometimes difficult circumstances. The senior management group will remain in place to lead our team and on behalf of everyone at Brawn GP, we are honoured to be representing such a prestigious brand as Mercedes-Benz in Formula One next year and will be working together to do our best to reward their faith in our team.”

The new Silver Arrow team, Mercedes Grand Prix, will compete in Formula 1 as a works team in its own right. Synergies between the 100 per cent Daimler-owned subsidiary Mercedes-Benz High Performance Engines in Brixworth, UK, and the Mercedes Grand Prix team based about 28 miles from there in Brackley in the UK, will create even greater efficiency.

It is our target to develop a model for our Formula 1 activities which will initially be run with significantly reduced budgets by Mercedes-Benz and which, in the foreseeable future, will be self-financing”, comments Norbert Haug. “Furthermore, we naturally want to inspire our faithful spectators and TV viewers worldwide and  maximize media coverage for our brand. With Formula 1, Mercedes-Benz can continue to clearly demonstrate its willingness to compete and win on the most important motor sports competition stage in the world.”

Khadem Al Qubaisi, Chairman, Aabar Investment PJSC comments: “Aabar is delighted to join forces with Daimler AG and its world leading brand Mercedes-Benz in order to create a new Formula One Team which follows in the footsteps of the longstanding and successful tradition of the famous ‘Silver Arrows’.

“Ever since Aabar became the largest shareholder in Daimler AG, the cooperation between our two organisations has been exemplary, and we have already co-invested in Tesla. Aabar is confident that further successes will follow in this arena.

“Bearing in mind the recent outstanding success of the Abu Dhabi GP, which brought Formula One to the United Arab Emirates for the first time, it is especially exciting to realise that next year, our own cars will be in the field, with the genius of Ross Brawn, who is still deeply involved with the team, now backed by the unrivalled excellence of Mercedes-Benz across the entire spectrum of automotive technology. It is a fantastic prospect, which makes me both pleased and proud for my country.”

Mercedes will debut a plug-in hybrid version of the S-Class at the Frankfurt Auto Show next week. The car, apparently labeled the Vision S500 PHEV (Plug-In Hybrid Electric Vehicle), will be powered by a V6 gasoline engine, connected to an electric motor and a lithium-ion battery pack. The uber-saloon will be able to travel up to 18.6 miles (30 km) on pure electric power before the gasoline engine kicks in to recharge the batteries.

Mercedes claims the car should get roughly 73.5 mpg (3.2L/100km).

While fuel-efficient, the car is also reported to be a performer, with a 0-62 mph time of 5.5 seconds.

“The Vision S 500 HYBRID is a new milestone on our path toward zero-emission mobility,” said Mercedes CEO Dr. Dieter Zetsche. It is a luxurious and safe S-Class vehicle that offers superior driving performance while at the same time consuming less fuel than current compacts. All of this shows that our top models will also be able to combine automotive fascination with responsibility for the environment.”

We’ll be sure to bring you more on the Vision S500, with live coverage from the Frankfurt Auto Show starting September 15th.

GALLERY: S-Class PHEV

[Source: WorldCarFans]