Mercedes-Benz is going guerilla with its marketing tactics for the new A-Class by placing camouflaged cars around Germany stamped with QR (Quick Response) codes to give those lucky enough to scan them a chance at some prizes.

While that’s good news for a bunch of lucky Germans, the rest of us will have to settle for a new video showing the body shape, headlights and bits of bumper. The video is just a small teaser for the full reveal which will happen in Geneva this March.

If you’re in Germany and see one of the “specially marked” vehicles, whip out your smart phone and scan the code. It could lead to a visit to witness the A-Class debut in person.

Last month our spy photographers spotted a camo-wrapped A-Class being tested but we weren’t sure about the mechanical details. Since then we’ve learned that it will likely feature a 1.8-liter turbocharged four cylinder mated to a seven-speed dual-clutch transmission. Most models will feature front-wheel drive, though the AMG variant will get 4Matic treatment.

Expect to hear about the A-Class hitting the road in Europe by the end of the year, but not in the U.S. until mid 2013. There will, however, be a four-door coupe hitting the American market based on the same drivetrain later this year.

We’ll be covering the A-Class reveal as well as other breaking news from Geneva starting on March 6.

Watch the promo video after the jump.

[Source: Motor Authority]

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Your New Year’s Day hangover is nothing compared to the headache Porsche is currently threatened with. A group of unnamed investors are suing the company for about 2.6 billion dollars over the company’s failed Volkswagen takeover attempt in 2008.

Official details are scarce in the case, but according to OTS newswire as of late Friday, the lawsuit was filed in the district court of Stuttgart, Germany. Additionally, according to a story published by Reuters with sources close to the case suggests the plaintiffs are Elliott Associates, L.P., Elliott International, L.P., The Liverpool Limited Partnership, Perry Partners L.P., Perry Partners International, Inc., DE Shaw Valence International Inc., and York Capital Management Europe (UK) Advisors, LLP.

A statement from the investors explains the suit, though Porsche is insisting the claims are unjustified.

“Porsche gained control over the price of VW common stock as it secretly built enormous derivative positions covering almost all of VW’s freely traded shares, then triggered a massive short squeeze, and finally released billions of euros worth of shares into the short squeeze for its own profit,” said the statement.

Meanwhile, Porsche spokesperson Frank Gaube rejected the notion of the suit calling it unjustified.

Volkswagen is wary of the situation as well. Porsche incurred about $13 billion in debt as a result of their failed 2008 takeover attempt, but lawsuits upheld the merger that happened a year later between the two companies. Volkswagen just seems to be waiting and hoping to avoid the maelstrom of investor anger spawned by the debacle.

[Source: Automotive News]

German luxury titans Audi and BMW are migrating to a new battlefield in hopes of growing their brands despite domestic debt worries.

According to Jenny Gu, a Shanghai- based analyst at research firm LMC Automotive, the number of luxury cars sold in China for 2011 may  increase by 39 percent to 939,000, overtaking Germany by 25,000.

That 2.7 percent margin might not seem like a lot, but Europe as a whole is on a downswing for premium products. China, on the other hand, is growing rapidly. Gu expects Chinese sales to increase 16 percent next year, eclipsing the forecast 4.4 percent for Germany.

“Luxury car demand is still on the rise in China with low penetration rates,” Gu said to Bloomberg. “Sales of such cars in developed markets like Germany fluctuate together with the economic cycle.”

Despite BMW’s lead as the largest luxury manufacturer worldwide, Audi actually beats them in China— something they hope will boost them toward their goal to beat Bimmer for the top spot by 2015.

While it sure isn’t over until the lederhosen-laden fat lady sings, this year might serve as an indicator of things to come. Audi enjoyed a meteoric 69 percent sales spike in China this year, as compared to Mercedes-Benz‘ 24 percent and BMW with a measly 9.8 percent growth.

Those numbers seem to have BMW and Mercedes scrambling, both automakers will keep their plants open an additional week this year by limiting holiday closures. Audi, on the other hand, will enjoy the full two weeks that the other two have forgone for a second year running.

Though some analysts are predicting a softening in the Chinese market thanks to stricter mortgage regulation, Olaf Kastner, CEO of BMW’s Chinese venture, Brilliance China Automotive Holdings Ltd. doesn’t seem concerned.

“The premium car industry has enjoyed over the past two to three years an amazing growth,” Kastner said to Bloomberg. “We still, in the premium segment, will see a higher growth rate than the mass segment” for next year.

[Source: Automotive News]

The Volkswagen up! is now offering an incredible promo exclusively in Germany. According to Auto Express, a new VW up!, carrying a 10,000 Euro MSRP, can be leased for a mere 95 Euros a month.

There are no strings attached either. There is no initial deposit necessary. Nor are there additional road tax, servicing, roadside assistance, or warranty fees. Even comprehensive insurance will be a part of the 95 Euro deal.

VW marketing boss, Luca de Meo, explains simply, “All you have to do is put fuel in it.” What’s more, there are no age limitations for the promotion either. The youngest drivers are usually paying the highest insurance premiums but they will be eligible for the up! leasing promo as well. Previously, Peugeot offered a similar promotion called “Just Add Fuel” but limited the incentive to drivers that are over the age of 25 only.

Luca de Meo continued, “This is the most important new car for the VW brand and we need new customers, especially young people.” Sources have claimed that similar promotions will be offered in Britain as well but no word on how much the promo will cost when translated into the British market.

[Source: AutoExpress]

Porsche broke ground on an expansion of its Leipzig, Germany factory, that will produce its upcoming Cajun crossover, a smaller model expected to slot below the popular Cayenne SUV.

The $500 million investment will add 1,000 new jobs at the plant, which already produces the Panamera sedan and the Cayenne. The Cajun will ride on the same platform as the Audi Q5 and debut in 2013.

[Source: Left Lane News]

In the world of race seats, perhaps no name is bigger or stronger than Recaro. This German company has been manufacturing seats since 1906 and its products are now sold around the world. It is so popular, that if you come across a race car, chances are its seats are by Recaro.

Not to rest on their success, Recaro is looking to new channels to spread their word on the advantages of their seats. It has now just launched a Facebook page and a YouTube channel to attract more fans to their brand.

On their YouTube channel, they will post videos featuring different athletes who will talk about why they use Recaro seats. The first videos feature Formula Drift Champion Chris Forsberg. In the coming weeks you see videos featuring skateboarder Bucky Lasek and BMX/Rally Cross expert Dave Mirra.

British racing driver Jackie Stewart called the Nurburgring Nordschleife (Northern loop) the “Green Hell,” and this past week, the track lived up to its nick name due to an eight car pile up that included a rented Chevrolet Corvette, a BMW M3 “Ring Taxi”, two rare Vauxhall VX220′s an E36, E30 and E92 BMW 3-series, an old Porsche 911.

The accident took place on a public lapping day at the “Bergwerk” section, where a construction company was doing some repair work, which is not a great idea especially when novices are out on the track. According to reports, four cars were racing as they approached the construction zone, which according to some was not clearly marked.

These four cars slammed on their brakes upon seeing the construction zone and the carnage ensued. This chain of accidents took out eight cars in total and sent one man to the hospital with serious injuries.

This accident caused around $200,000 worth of damage to cars and property. Usually all damages to the track are paid by those involved in the accidents, but there could be a strong case made against the track for its untimely construction on a open lapping day and then not marking the construction zone clearly. We reckon this story is far from over. We’ll keep you posted on this developing story.

[Source: GT Spirit]

Audi has unveiled their latest iteration of the S6 and S6 Avant, and the mid-size sports sedans look to continue the engine downsizing trend, moving from a 5.2L V10 to a 4.0L V8 with twin turbochargers making 420 horsepower and 405 lb-ft of torque.

The new S6 will sprint to 60 mph in 4.8 seconds (while the Avant does it in 4.9) while consuming only 24 mpg (a figure we assume is on the highway). Power is transmitted to all four wheels via Audi’s S-tronic dual clutch ratio with seven cogs, and the active sport differential will also be an optional, similar to the S4.

An air suspension, 19″ wheels and a noise cancelling system (to keep the cabin silent) are all standard. No word on pricing, or North American availability, but we’d assume that the sedan is a shoo-in, while the Avant will sit this one out.

Check back for more updates when AutoGuide covers the Frankfurt Auto Show live on September 13th.

Gallery: Audi S6 and S6 Avant

In a world filled with mostly useless, annoying toys that don’t challenge the mind, LEGO is an exception.

The Danish company has been making toys out of interlocking building blocks since 1949, and they cater to different skill sets based on their models.

If you played with LEGO when you were growing up, their new model might take you back into their store. It is a 1:12 scale model of the Mercedes-Benz Unimog, and it’s their latest addition to their TECHNIC line.

This model has 2000 pieces and is fully functional. It has a working winch, optional snowplough, suspension, differentials, a four-wheel drive system and even working pistons!

The TECHNIC Unimog was built with full co-operation from Mercedes-Benz, which wanted to celebrate this work trucks 60th anniversary.

Look for it in at your local LEGO store soon. Based on European prices, it should cost you $255, which is a bargain for something that will make you feel like a kid again.

[Source: Carscoop]

Spurred by the recent riots in London, the Germans have taken to the streets—and their target are the Mercedes, BMW, and Audi cars owned by “fat cats” that are ruining their country.

About 138 cars have been torched across Berlin, with 26 just in the past two days. 130 of those have been Benzes; 91 Volkswagens, 60 BMWs, and 43 Audis and Opels comprise the rest. Berlin police are setting up special investigative units to process the cases as political crimes, which carry steeper penalties than mere vandalism. Arsonists usually light up the cars through the tires, placing barbeque charcoals around them. So far, no arrests have been made.

Germany is facing a terrible economic downturn: despite lofty sales figures from its car makers, Germany’s growth has almost completely stopped. This is coming from a country that only last year supported Western Europe’s economy. Many people believe that the protests and arsons aren’t about the financial crisis—they’re aimed against capitalism in general, globalization and gentrification in East Berlin’s former Soviet areas.

It’s common belief that any social injustice eventually devolves into an “us vs. them” mentality—the rich make convenient targets in this economic downturn, and certainly those who are wealthy enough to afford luxury cars are more of a target than London’s humble shopkeepers. And even as the Vancouver protests over the Stanley Cup have shown, cars are the number one target: especially expensive ones. As long as there’s inequality, even a perceived one, anywhere in volatile Europe, cars are going to go up in flames.

[Source: Zero Hedge]