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Aston Martin and Mercedes-AMG formalize technical partnership

The development of a partnership between Mercedes-Benz and Aston Martin has been a long time coming. The news dates back to 2008, and over the five years since was supposed to lead to a rejuvenation of both the Maybach and Lagonda brands. That program ultimately fell apart, but the tie-in was forged afresh in July when the two automakers signed a letter of intent over a renewed partnership. And now that partnership has been formalized.
In a deal just announced, Mercedes-AMG will build a new V8 engine for Aston Martin that will power a new generation of luxury GTs for the British marque, presumably to replace the 4.7-liter V8 in the Vantage. The relationship appears to be similar to the one already in place between AMG and Pagani, only in this case, will involve Daimler taking as much as a five-percent stake in Aston Martin and an observer seat on Aston's board.
The technical partnership is also set to lead to the supply of electric and electronic systems, and could incorporate "additional areas of cooperation in the future." Whether that will include a fresh attempt at reviving Lagonda remains to be seen, as does the future of Aston's long-serving, Ford-based 6.0-liter V12 engine. But for now you can read the full announcement below.

Mercedes calls CLA 'best launch in 20 years' as it warns dealers of tight supplies

It's still in the early going, but it's looking more and more like the 2014 Mercedes-Benz CLA is a verifiable home run for the German brand. According to a new report from Bloomberg, the new small car isn't just widening the sales gap between Mercedes and BMW, it's attracting a new, younger breed of customers into the brand's showrooms. But that early success is straining supplies of the turbocharged four-door.
Dealers have been warned that the first half of 2014 will see limited supplies for CLA, with a letter to dealers indicating that "tight inventories and low days supply" will exist from February through June, despite the car's Kecskemét, Hungary plant running at full tilt.
"This is our best launch in 20 years," said Steve Cannon, the US boss for Mercedes. "The CLA has been a phenomenal success right out of the gate." The numbers certainly support that. We reported in early October that Mercedes moved 2,300 CLAs in its first week on sale, and now Bloomberg is saying CLA sales were almost singlehandedly responsible for Benz's November sales gains. Mercedes' annual sales are up 14 percent through the November, and it's enjoying a healthy 7,600-car lead over BMW.

Mercedes making aggressive plans for Chinese market

Mercedes-Benz is preparing a major product offensive to counteract lagging sales in the Chinese market, aiming 20 new or updated models at the People's Republic in the next two years, according to a report by Reuters. The plan is part of MB's so-called 2020 Initiative, which will see the Stuttgart-based manufacturer dump 2 billion Euros ($2.67 billion) into its Chinese market vehicles in a bid to boost sales to 300,000 units by 2015.
Were it to succeed, China would become the largest market for the Silver Arrow, outpacing Germany and the United States. Leading the charge will be the redesigned E-Class, which is set to launch in China this week. That will quickly be followed by the S-Class, and eventually by the GLA-Class in 2014.
Mercedes has struggled in China, especially relative to its German competition, BMW and Audi. Where Mercedes saw a mere four-percent increase in 2012 sales to 206,150 units, Audi was up a staggering 32 percent, while BMW's numbers jumped 41 percent. While some voices, according to Reuters, accuse Munich and Ingolstadt of boosting their numbers through hefty incentives, the fact remains that Mercedes was just walloped by its competitors last year.