• Fuel Cell Vehicle JV Under Debate Between Daimler and Toyota: FT Deutschland have reported that Daimler and Toyota are discussing a joint development of fuel cells for electric vehicles.  ‘There is strong interest in sharing development costs’ via a joint venture, a source close to Daimler told the Financial Times Deutschland. It would be the first major cooperative project for the two groups, the newspaper added.  Daimler has already invested more than one billion euros (S$1.75 billion) in fuel cell technology since 1994, two years after Toyota began exploring it.

• Fuel cell developer Trenergi Corp. has raised more than half of a seed round of $1 million in debt, according to a regulatory filing and the company’s president. The Hopkinton-based company, now about a year old, is aiming to develop fuel cells that would generate electricity for residences while producing heat and hot water as a free byproduct. The technology is intended to save an average of approximately 28 percent of energy cost, said company president Charles Myers.

• The Chevy Volt is being spotted on the streets of Metro-Detroit gearing up for its official launch.

• Ford is investing $135 million to bring battery pack and hybrid vehicle transmission production to metro Detroit. The work is currently done in Mexico and Japan.

 On March 1st  of this year, Daimler AG signed a Memorandum of Understanding (MoU) with BYD Company Limited to enter into a comprehensive technology partnership for the development of electric vehicles for China.  Under the agreement, Daimler and BYD intend to develop a new electric vehicle specific to the requirements of the Chinese market. The vehicle will be marketed under a new brand jointly created and owned by Daimler and BYD. In addition, a common technology center will be established in China to develop, design and test this electric vehicle.  It should be mentioned that Berkshire Hathaway, Warren Buffet’s firm, owns a stake in BYD.

Yesterday, media reports that the Renault/Nissan and Daimler  were in talks to form a strategic alliance resulted in increased stock prices and no denials from the companies themselves. Yoshihiko Tabei, chief analyst at Kazaka Securities said “The alliance with Daimler could lead to Nissan supplying its electric cars to the German automaker. If that happens, it would boost Nissan’s EV car business while it is in an early stage”.

Daimler, who had made large investments in hydrogen fuel cell technology for many years, is clearly positioning itself to produce electric vehicles as fuel cell technology stumbles in its efforts to become viable for mass marketed personal transportation.

Currently, the transportation sector accounts for 28% of total U.S. energy use. As these vehicle technologies are adopted broadly across the country, they could save more than 100 million gallons of gasoline and diesel per day, and reduce carbon emissions from on-road vehicles by 20% by 2030.

Vice President Biden said;

“By investing Recovery dollars in next generation fuel efficient trucks here at home, we’re not only creating new job opportunities now, but helping lay a new foundation to keep American auto manufacturers competitive in the 21st century global marketplace. Through strategic public-private investments like these, the Recovery Act is helping lay the groundwork for an expansion of our clean energy economy.”

“Improving the efficiency of our vehicles is critical to reducing America’s dependence on foreign oil and addressing climate change,” said Secretary Chu. “Today’s awards will help demonstrate the potential benefits for long-haul trucks and passenger vehicles and will play an important role in building a more sustainable transportation system for the country.”

Three projects will focus on cost-effective measures to improve the efficiency of Class 8 long-haul freight trucks by 50%. These projects will receive more than $115 million in funding to develop and demonstrate systems-level fuel efficiency technologies by 2015, including improved aerodynamics, reducing engine idling technologies, waste heat recovery to increase engine efficiency, advanced combustion techniques, and powertrain hybridization.

The remaining six projects totaling more than $71 million will support efforts to increase the fuel economy for passenger vehicle engines and powertrain systems. The goal is to develop engine technologies that will improve the fuel economy of passenger vehicles by 25-40% by 2015 using an engine-only approach.

The following projects have been selected for awards under two topic areas:

“With this significant investment we are defining our future in the compact car segment and safeguard the plant Rastatt in the long term. In addition, we will continue to invest in our locations in Germany – about EUR 3 billion in 2009 and 2010 alone,” said Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and head of Mercedes-Benz Cars. “The expansion of the Rastatt plant illustrates our clear commitment to our center of excellence and the excellent work of the Rastatt employees,” continued Zetsche.

“The expansion of the Mercedes-Benz plant in Rastatt is a symbol of our country’s innovative capability and export strength. At the same time, is it also a signal to continue to invest particularly in times of crisis, thus maintaining and creating technology jobs for the future,” said Baden-Württemberg Finance Minister Willi Stächele on the occasion of the plant expansion in Rastatt.

New body shell hall in Rastatt

An additional production hall, in which construction for the plant equipment for body shells will begin soon, has been built as an auxiliary to the existing building facilities in Rastatt. To enable part deliveries and unloading directly at the production site, a direct train connection is planned for the hall. The new body shell hall has an area of approximately 66,000 m2. This is where parts from the local region will also be installed: The groundbreaking ceremony for a new Mercedes-Benz press shop for production, among other things, of exterior parts for the follow-up generation to the A- and B-Class from 2011 was held in the nearby town of Kuppenheim in June. The total investments for the Kuppenheim press shop amount to around 70 million euros.

Follow-up generation of the A- and B-Class

With the expansion of its product line in the compact vehicle segment, in future Mercedes-Benz will be offering four models instead of the current two with a view to acquiring new customer groups and growing in additional markets. The future models will also offer product features like generous interior space, which are already popular with customers of the A- and B-Class. In addition, further variants and designs will set new trends.

Production network between Rastatt and Kecskemét

The construction work in Kecskemét, Hungary began a few days ago with the official ground-breaking ceremony. The building for vehicle paintwork at the new factory is being constructed first, followed by the body shop and the assembly hall starting early next year. Both plants together form a coordinated production network. The first models of the successor generation will be produced in Rastatt from the end of 2011, and the production ramp-up in Hungary is planned for 2012.

“Production costs are a key factor in the competitiveness of the price-sensitive compact vehicle segment: The coordinated production network of the Rastatt and Kecskemét plants will make a key contribution to this,” said Rainer Schmückle, Chief Operating Officer of Mercedes-Benz Cars. “In future, three of four vehicles of the successor generation to the A- and B-Class will come from the Rastatt plant location, which will remain a central proven component of our production network.”

Successful in the premium compact vehicle segment

With the A- and B-Class, Mercedes-Benz is already a successful premium manufacturer of compact vehicles. Since the A-Class entered production in 1997 and the B-Class in 2005 over 2.4 million A- and B-Class vehicles have rolled off assembly lines. Between 2002 and 2005 Daimler AG invested about 900 million euros in the Rastatt plant for the second generation of the A-Class and the B-Class.

The most important markets for the compact vehicles from Rastatt are Germany, Italy, France and the UK. In addition, this year the B-Class was successfully launched in China where it has gained a market share of 25%, significantly above expectations.

A- Class E-Cell in small series production starting in late 2010

From the end of 2010 production at the Rastatt plant will also be expanded with small series production of the electrically-operated A-Class E-Cell. Peter Wesp, head of the Mercedes-Benz plant in Rastatt: “Small series production of the A-Class E-Cell will once again prove the expertise of the Rastatt plant in premium compact vehicles. The employees are also intensively preparing for the successor generation of the A- and B-Class – we are thus well-prepared and highly motivated for the future.”

Mercedes-Benz Rastatt plant

The Rastatt plant is Mercedes-Benz’ center of excellence for compact vehicles, with around 5,700 employees. The production start of the A-Class marked a new generation of vehicles in 1997. The Mercedes-Benz B-Class has also been rolling off the assembly lines in Rastatt since 2005, with a production of more than 500,000 vehicles to date. Both compact vehicles appeal to customers mainly with their unique security concept, spacious interiors and excellent variability.

“The establishment of the Global Hybrid Center at MFTBC shows the increasing focus of Daimler Trucks and Mitsubishi Fuso on developing hybrid commercial vehicles,” said Dr. Eike Böhm, MFTBC Vice President of Product Engineering. “We believe the market for hybrids will expand more rapidly in the future, given the need to further reduce vehicle emissions as well as fuel consumption. The new Center will concentrate our efforts in developing clean, efficient hybrid commercial vehicles to meet market needs now and in the future.”

According to Dr. Böhm, the role of the new Global Hybrid Center is to direct and synchronize Daimler Trucks hybrid development activities on a global basis. All of Daimler Trucks hybrid activities will be aligned under the Center, including regional hybrid personnel at Daimler Trucks divisions MFTBC, Mercedes-Benz Trucks and Daimler Trucks North America LLC. A total of 50 people will be affiliated with the Center.

Mr. Fumio Akikawa has been named as Director of the Global Hybrid Center. Mr. Akikawa, a 35-year automotive and truck industry expert, also will continue in his current role as Director of Powertrain Development for MFTBC.

MFTBC was chosen as the location for the Center because of the company’s history and expertise in hybrid vehicle innovation. Mitsubishi Fuso has been developing hybrid vehicles for over 10 years and today offers fuel efficient, low emissions products like the Canter Eco Hybrid light-duty truck and the Aero Star Eco Hybrid bus for the Japan market. The company has also developed the Canter Eco-D, a concept hybrid light-duty dump truck. Already, MFTBC had been serving as the hybrid competence center for Daimler Trucks. The founding of the Global Hybrid Center expands this role and creates a formal organizational structure for coordinating hybrid development on a global basis.

With the opening of the new Center, Mitsubishi Fuso also announced it will double the number of its dedicated hybrid engineers to about 35 people.

Hybrid Fleet Test Now Underway in Europe

The opening of the Global Hybrid Center comes as Daimler Trucks and Mitsubishi Fuso has launched Europe’s largest fleet test of hybrid trucks.

Mitsubishi Fuso in Europe has presented ten Canter Eco Hybrids to eight customers in London. The three-year evaluation will examine the use of the 7.5-ton hybrid trucks by customers and demonstrate the diesel-electric hybrid drive’s high level of efficiency. The vehicles in the test could consume up to 15 percent less fuel than conventional diesel vehicles, and also significantly reduce CO2 emissions.

The Canter Eco Hybrid’s performance will be documented in a variety of applications, including frequent stop-and-go delivery in the heart of London, as well as longer runs between stores and warehouses. The eight customers involved in the fleet test are Amey, DHL, Hill Hire, Ringway, Royal Mail, Scottish and Southern, Tesco, and TNT.

The vehicles used in the test are tailored for European requirements and include hybrid systems with electric motor and the Euro 4 power train of the series-produced 7.5-ton Fuso Canter. They will be equipped with a new measuring system to collect performance data and will be serviced by two specialized Mercedes-Benz service centers located in the London metropolitan area.

“Shaping Future Transportation”

The opening of the Global Hybrid Center and the start of the Mitsubishi Fuso Europe hybrid test are two more important milestones in the “Shaping Future Transportation” initiative of Daimler Trucks and Daimler Buses.

“Shaping Future Transportation” is the name of the global initiative of Daimler Trucks and Daimler Buses to redouble ongoing efforts to achieve a major reduction in the fuel consumption and exhaust emissions of commercial vehicles. Announced in November 2007 at an event in Stuttgart, Germany, “Shaping Future Transportation” encompasses alternative drive system initiatives across various commercial vehicle brands. Hybrid technology plays a key role in these vehicles, as it can reduce diesel consumption by up to 30 percent, depending on the application.

smart plant in Hambach, France selected as the location for the large-scale series production of the smart fortwo electric drive - announcement made on the occasion of the visit of French President Nicolas Sarkozy: Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars (left) and President Nicolas Sarkozy (right) .

Daimler AG today announced that it selected the smart plant in Hambach, France, as the location for future series production of the smart fortwo electric drive. As of 2012, the highly innovative electric vehicle, equipped with the most modern lithium-ion-battery, will roll off the assembly line in large-scale production and will be offered to customers through the smart sales network.

The announcement was made on the occasion of an official visit of French President Nicolas Sarkozy at the Hambach plant.

Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars:

“The smart fortwo electric drive proves that emission-free driving in an urban environment is already feasible today. The initial series production will begin now with 1,000 vehicles, the first of which will be delivered to customers by the end of this year. As of 2012, the smart fortwo electric drive will then be part of the regular product program of the smart brand. With our decision to locate production here at the parent plant in Hambach, we are setting the course both for series production of electric vehicles and for the future of this highly innovative assembly plant“.

Daimler will invest a double-digit million euro amount at the Hambach plant for production of the next generation of the smart fortwo electric drive with lithium-ion-battery. During his visit, President Sarkozy announced that the French government will support the project through its PAT (Prime d’aménagement du territoire) program. Further support is to be extended by the Region Lorraine and the Département de la Moselle. Both these measures will comprise a total of 15 percent of the investment. The president was visiting the plant today to – amongst others –get a first-hand impression of environmentally compatible powertrains of the future.

In November 2009, the plant will start to produce a small series of about 1,000 units of the smart fortwo electric drive. In a first step, these vehicles will be provided to customers participating in various mobility projects in major cities in Europe and the U.S., in order to generate additional feedback from the use under everyday conditions.

As of 2012, the smart fortwo electric drive will be produced in significantly larger volumes as a regular part of the smart product portfolio and will be sold through the smart sales network. smart thus emphazises its pioneering role on the way to individual mobility with local zero-emissions in cities and urban areas.

First Milestones in 2007 and 2008

Since 2007, the smart brand has taken a pioneering role in the electrification of drive systems. Back then, smart started emission-free driving under tough everyday conditions of city traffic in London. 100 smart fortwo electric drives of the first generation have been in practical customer operation. The feedback from this project has been very positive and confirmed the high degree of maturity of this vehicle concept.

Just one year later, the company introduced the second generation with an even more advanced electric drive and an innovative, highly efficient lithium-ion battery. Lithium-ion technology has decisive advantages over other types of batteries including higher performance, shorter charging times, a long life and high reliability. In addition, a smart fortwo electric drive can be charged at a regular household power outlet.

A story of success: The smart Plant in Hambach

The smart plant in Hambach was inaugurated in 1997. Since 1998, it has produced the smart fortwo, since 2007 in its current generation. In 2008, more than 800 employees of the plant and some further 800 people employed by seven system partners produced about 140,000 units of the smart fortwo. In September 2008, the brand celebrated its tenth anniversary along with the 1-millionth smart fortwo produced at the Hambach plant.

The Hambach plant has represented an innovative production concept since its beginning: The assembly line in the shape of a plus sign has been designed to optimally meet the demands of assembly and logistics and ensures highly efficient production processes. This principle enables the system partners to supply modules directly to the assembly line, which reduces transport and logistics efforts to a minimum and hereby also provides an advantage regarding ecological aspects. In addition, the environmentally friendly and cost effective paint shop, an energy concept with numerous savings opportunities and the construction principle of the vehicles ensure that the ecological product responsibility of the smart brand is translated into the production.