Mercedes-Benz to Build Subcompact B-Class AMG, Destined for U.S. Market?

Mercedes-Benz to Build Subcompact B-Class AMG, Destined for U.S. Market?
What’s next for Mercedes-Benz’s AMG performance division? According to executives, a hopped-up AMG variant of the next-generation B-class subcompact.

Current AMG boss Volker Mornhinweg (who’s destined for Mercedes-Benz’s van division in a month) recently told Automotive News that the tuning wing is, in fact, developing a high-performance variant of the next-gen B-class. The car will be AMG’s first stab at something smaller than a C-class, but Mornhinwheg says it’s a move to attract younger customers.

A B-class AMG would also be an ideal offering for Mercedes-Benz to counter the likes of the Mini Cooper S, Audi’s S3, and the Volkswagen GTI. Changes will include revised chassis tuning, cosmetic enhancements, and a high-performance engine -- likely a boosted four-cylinder -- that will be hand-built in AMG’s factory in Affalterbach, Germany.

Though the model is slated to launch in Europe at the end of 2011, it’s still uncertain if the B-class AMG -- let alone the entire B-class range -- is destined for the U.S. Mercedes-Benz has long entertained the idea of launching the B-class in America, but executives recently noted the business case rests upon fuel costs and Americans’ demand for small cars.

If the B-class is green lighted for the U.S., we think the AMG variant is almost certainly headed here.  The U.S. remains one of AMG’s largest markets, and a low-cost, fuel-sipping sport compact may help the brand expand into thriving new segments.

Source: Automotive News (Subscription Required)

Next-Generation Mercedes-Benz SLK Spied

We won’t see a new SLK roadster for another couple of years, but Mercedes-Benz is already diligently testing its all-new 2012 model well ahead of its debut. Surprisingly, engineers decided to leave most -- if not all -- of the heavy camouflage off the car.

Size-wise, the test car looks as if it keeps its current dimensions, but is expected to shed some weight by employing additional lightweight materials. The current SLK’s SLR-inspired nose appears to have been eschewed in favor for a look influenced by the company’s latest supercar, the SLS AMG. Rearview mirrors are mounted on the doors -- another SLS attribute. LED strips below the headlamps keep the SLK in-line with current trends.

The taillights in the rounded rump receive the LED treatment as well, while the SLK's trunk lid gets a subtle spoiler and now serves as the location for the radio/communications antenna. This particular prototype also seems to sport a larger rear glass window.

A new engine lineup with a diesel option is rumored to be in the works. Insiders say it could make its debut in Paris this September, but will most likely make its first appearance at next year's Geneva show

Audi's Stronghold in China Threatened by BMW, Mercedes-Benz

For the last 20 years, Audi has been top dog in the Chinese luxury auto market. Now its reign could be threatened as BMW and Mercedes-Benz begin to gain traction in the emerging market. 

"Mercedes and BMW have more up side than Audi in emerging markets, so it will be difficult for Audi to achieve its target," London-based automotive analyst Arndt Ellinghorst told Automotive News.

As the world's single largest automotive market, Chinese customers are increasingly important to BMW and Mercedes. As a result, both have crafted vehicles specifically aimed at the Chinese market. Tomorrow at the Beijing auto show, BMW will unveil an extended 5 Series, while Mercedes is set to debut its new longer E Class. The reasoning for extended wheelbases is that the wealthier Chinese population is typically chauffeured. 

Earlier this month, Audi posted its first quarter sales figures. With a strong start to 2010, Audi was able to secure the second place spot in global luxury sales, bumping Mercedes down to third. The Ingolstadt based automaker hasn't fared so well in China lately. Over that last 6 years, Audi's market share has slipped from 66 percent down to 46 percent. BMW has climbed from 16 to 23 percent, while Mercedes more than doubled its share, from 7 to 16 percent.

Audi had 159,000 deliveries in 2009, but has a goal to sell 200,000 this year. On track for that target, it sold 51,449 in the first quarter this year. Last year BMW sold 90,500 vehicles, but is on track to surpass that mark, with 34,179 sold through March. Mercedes sold 24,100 vehicles in the first quarter of 2010, and should meet its 100,000 sales goal. BMW is investing $749 million in a new Chinese factory to double capacity to 100,000 units annually. Mercedes already has a 100,000 unit production capacity in China.  

"The potential of the Chinese market remains enormous, and our targets are correspondingly ambitious," Daimler CEO Dieter Zetsche said last week.

Source: Automotive News (Subscription required)