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Daimler buying 12% stake in Beijing Auto

Daimler and Beijing Automotive are officially going steady, with the German company set to take a 12-percent stake in the Chinese brand tomorrow. The two are already tied up in a Mercedes engine plant in Beijing, of which BAIC will increase its stake in, from 50 to 51 percent. Daimler will also get two seats on the Chinese company's board. BAIC may also gain the ability to produce cars on Mercedes-Benz platforms, according to Automotive News Europe.
The investment in BAIC comes ahead of that company's initial public offering, according to a report form Bloomberg, which indicates the deal will be inked tomorrow in the Chinese capital. According to the report, if the circumstances are right, BAIC may turn around and invest in the Germany company "soon."
It's not entirely clear just how much the 12-percent cut is costing Daimler, although it seems reasonable to assume that, as it's ahead of the IPO, the parent company of Mercedes is getting a bit of a bargain.

Mercedes to market Tesla-powered 2014 B-Class EV in U.S.

Looks like another Tesla Motors investor will be looking to cash in on their connection. Autoweek reports Mercedes-Benz will offer their B-Class in the U.S. with Tesla propulsion.
The magazine says their source at the German automaker confirms plans for a B-Class electric-only vehicle. While Tesla already provides battery packs for the battery-powered Smart ForTwo, the B-Class EV will reportedly have Tesla batteries, motor and other components. U.S. residents should be able to procure one sometime in 2014.
The same Mercedes source says plans for a hybrid B-Class have been postponed for now. Adding a range-extending, gasoline-powered engine to an electric vehicle would put the car into a different class for which rebates and incentives aren't as favorable in the States.

2014 Mercedes-Benz S500 Plug-in Hybrid for fat cats frugal with fuel

Judging by how long we waited to get a clear shot of the Mercedes-Benz S500 Plug-in Hybrid, you'd have thought hybrid cars were only driven by Terminators and that the technology arrived only 48 hours ago through a wormhole in the Mercedes stand. The newest member of the Mercedes-Benz S-Class hybrid band - joining the S400 Hybrid and S350 BlueTEC Hybrid, it hits notes like a 5.5-second sprint from standstill to 62 miles per hour, up to 19 miles of ion-powered running and uses three liters of gasoline per 100 kilometers in Europe (78.41 mpg US, but our mpg test cycle is different than their mpg test cycle).
The lump up front is a turbocharged, 3.0-liter V6, the lump in back - note the reduction in trunk space - is a pack of lithium-ion batteries that juice an 80-kilowatt electric motor. Other than having four drive options for controlling electric drive and battery usage, it's all S-Class all the time, with leather-covered everything and those mountainous thrones that bring to mind words like "Archduke" and "Papal."
You'll find our hard-earned gallery from the Frankfurt Motor Show floor above, and more words of information in the press release below.