New York 2010: Mercedes SLS GT3 Race Car Debuts, Street Car to Start at $183,000

Stay tuned for more of our complete coverage of the 2010 New York Auto Show, live from New York.

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)

Mercedes-Benz Anticipates No U.S. CAFE Penalty in 2010
In previous years, Mercedes-Benz occasionally has had to pay penalties because its corporate average fuel economy (CAFE) figure fell beneath standards set by the U.S. government. That will soon change, as the automaker expects to meet the 2010 CAFE standards.

Starting this summer, all of Mercedes-Benz’s six- and eight-cylinder engines will use direct injection, which covers every car the automaker sells in the U.S. According to Dr. Thomas Weber, Mercedes-Benz’s head of research and development, this development played a large part in helping the automaker meet the U.S. standard.

 “Even for 2009, we aren’t likely to pay much in the way of penalties,” Weber told Automobilwoche. “From 2010 on, we won’t pay anything. That is clearly our goal.”



Vehicles like the new S400 and ML450 Hybrids will certainly help, but Mercedes-Benz is moving towards using forced-induction engines with smaller displacement. For instance, the new twin-turbocharged 5.5-liter destined for its AMG line is reportedly 25-percent more fuel-efficient than the 6.2-liter V-8 it replaces.

We’re not surprised this is a major focus for Mercedes-Benz. In 2006, the company faced a record $30.3 million fine, and a similar $28.9 million fine in 2007. If Weber’s estimations prove correct, Mercedes-Benz has come a long way to reduce fuel consumption while offering customers the power they’ve come to expect.

Source: Automotive News

Chrysler Sales Drop Eight Percent in January 2010
Some may question the decision to split the Ram pickups from the Dodge brand, but it did help the latter to post a sales increase, something Chrysler's other three brands were unable to do. Dodge itself managed to eke out a 1-percent sales increase, while Chrysler sales fell 2 percent. Jeep sales were down 7 percent, while the Ram brand dropped 25 percent.



The Journey crossover continues to be the sales star at Dodge. 4790 examples were sold, marking a 55-percent increase over January 2009. Other notables included the Avenger sedan, up 44 percent to 3134 units, and the Grand Caravan, which jumped 34 percent to 4298. Caliber sales were up a scant 4 percent, while Challenger and Viper sales dropped 39 and 80 percent, respectively.

At Chrysler, the picture is slightly more grim. The Sebring witnessed a huge rebound, as sales jumped 85 percent to 3593 units. The Town & Country minivan continues to be the top seller, with 4531 examples (a 6-percent increase) moving off showroom floors. The remainder of the lineup, however, was sagging -- 300 sales were down 26 percent, and sales of the ancient PT Cruiser dropped 32 percent.

Jeep saw sales of its compact Compass skyrocket 52 percent to 1244 units, although the similar Patriot slid 7 percent to 1972 vehicles. The Grand Cherokee and Commander posted gains, up 6 and 22 percent, respectively. The Wrangler remains the brand's best-selling vehicle with 4888 copies sold in January, but is still off last year's number of 6362 units. The number-three seller, the Liberty, fell 11 percent to 2987 vehicles.

Slow truck sales truly hurt the Ram brand, which is comprised entirely of trucks. Sales of the new Ram pickup (especially in 1500 form) have helped bolster Chrysler as a company, but even Chrysler's best-selling vehicle saw sales slide 22 percent. Dakota sales, meanwhile, dropped 32 percent to 994 vehicles.

Source: Chrysler

LaHood singled out the Auburn Hills-based automaker as leading the pack in its creativity and innovation. Chryslers new designs will "put them in the marketplace like they've never been before," said LaHood. Secretary LaHood also through meeting with Chrysler, that the company was "as creative and innovative" as the best of them.

Chrysler announced its 5-year plan under Fiat's control back in November. The plan offered glimpses of what the company had to offer in the coming years. So far, the Ram nameplate has been separated and marketed as its own brand. The company has also decided to drop a few of its less popular models, as it prepares for incoming Fiat products. Chrysler will be revamping some of its current lineup until Fiat products can make their way to these shores. 



Having bailed out Chrysler and General Motors last year following the companies' bankruptcy, the government has a vested interest in the Detroit automakers.  The Obama administration expressed its "commitment and leadership to get the industry moving again for jobs."