Daimler is open to supplying Volvo with engines and could even take a small stake in the Swedish automaker, a German business magazine reported, raising the possibility of increased ties between Mercedes and Volvo's Chinese owner, Geely.
Geely owner Li Shufu, who in February became Daimler's biggest shareholder, said traditional automakers need a business model based more on sharing technology to generate acceptable returns in future.
Mercedes-Benz will launch its vehicle subscription program in a pilot with dealers in Nashville and Philadelphia, setting up a battle with BMW as the luxury rivals try out a new type of relationship with customers.
China's threat to retaliate against United States tariffs by imposing an additional 25 percent fee on American car imports would have a bigger impact on Germany's Daimler and BMW than on Detroit, according to analysts.
It is noteworthy that at the Geneva auto show, VW CEO Matthias Mueller predicted the diesel’s “renaissance” and Mercedes exhibited a preproduction plug-in hybrid version of its OM 654 diesel engine, part of a more than $3 billion investment in a new engine family.