AD #2561 – Geely Nearing Deal to Buy Stake in Smart, China Slashes EV Subsidies, Lincoln Corsair to Debut In New York

This is Autoline Daily reporting on the global automotive industry.

GEELY NEARING DEAL TO BUY STAKE IN SMART
Chinese automaker Geely is once again adding to its automotive empire. The Financial Times reports that the company is nearing a deal to buy a 50% stake in the smart brand from Daimler. The deal is expected to be announced at the Shanghai Auto Show in April according to sources. This strengthens the tie-up between Daimler and Geely. Last year, the Chinese automaker bought a 10% stake in Daimler to become its largest shareholder. And this just adds to the portfolio of brands Geely is amassing. It owns Volvo, and has stakes in Volvo Trucks, Lotus, Proton, the company that makes London cabs and Terrafugia, a company developing passenger drones.

RENAULT WANTS TO CREATE MEGA AUTOMAKER
And speaking of acquisitions, Renault wants to create an automotive powerhouse. The Financial Times reports that the French automaker wants to restart merger talks with Nissan within the next 12 months and then acquire Fiat-Chrysler, which would easily make it the largest automaker in the world. The combined companies would have the capacity to build 15 million vehicles a year.

And we’ll be back with more right after this.

VW PARTNERS WITH AMAZON TO IMPROVE PRODUCTION
In order to help streamline its manufacturing process, Volkswagen is teaming up with Amazon to create a cloud network for its factories. The Volkswagen Industrial Cloud will combine the data of all machines, plants and systems from all of the Group’s 122 sites around the world. It will help to detect supply bottlenecks, process disruptions and optimize the machinery and equipment in all its plants. VW says in the future it could also integrate the 1,500 suppliers in its global supply chain.

CHINA SLASHES EV SUBSIDIES
Uh oh! Bad news for automakers in China. The government is slashing subsidies for EVs. Battery electric vehicles with a range of about 250 miles or above, now qualify for a subsidy of $3,700, which is half of what it used to be. And to earn any subsidy, an EV must have a range of about 155 miles, which is up from 93 miles. On top of that, the Chinese government is also encouraging local governments in the country to end EV subsidies, including for buses and trucks. China is cutting subsidies because it’s concerned that automakers are becoming too reliant on them and want companies to innovate new battery technology, rather than using subsidies to boost sales. Automakers have a couple of choices. If they’re concerned about profit, they can keep prices of EVs the same, but that will cost them sales. Or if they want to maintain sales growth, they can lower EV prices but that will hurt their profits. Either way, it’s a lose-lose situation for them.

MERCEDES REVEALS AMG A 35 SEDAN
Mercedes-AMG has revealed the new A 35 Sedan. It shares many of the same components with the hatchback version that we reported on in September of last year, so here’s a quick refresher. Its 302-horsepower 2.0L engine is mated to a 7-speed dual clutch transmission and all-wheel drive. That helps the A 35 move from 0 to 60 in 4.7-seconds. A reinforced underbody and sportier suspension improves handling and it also features larger, more aggressive brakes. The interior rocks Mercedes’ new infotainment system and customers can even choose between three AMG display styles for the instrument cluster.

LINCOLN CORSAIR TO DEBUT IN NEW YORK
Back in June of last year we ran a story that the replacement for the Lincoln MKC would be renamed the Corsair. And now we know when the new utility vehicle will make its debut. The Corsair, which is based on the Ford Escape, will be unveiled at the New York Auto Show on April 17th. There’s several possible origins for the name. Ford made an Edsel Corsair in 1958 and there’s even a World War II fighter plane and pirate ship with the same name.

HYUNDAI NAMES NEW CUV
And speaking of new names at the New York Auto Show, Hyundai revealed it will show off an all-new crossover, called the Venue, which will be the smallest CUV in its lineup.

And with that bit of news we wrap up today’s show. Thanks for watching and we’ll be right back here again tomorrow.