Mercedes Valued at Half of BMW

From bloomberg;
“Daimler AG (DAI) investors value Mercedes- Benz at half what Bayerische Motoren Werke AG (BMW) is worth as Chief Executive Officer Dieter Zetsche’s effort to reclaim the title of world’s biggest luxury-car maker falters.

BMW’s market capitalization has surged to 45 billion euros ($58.8 billion), versus 42.2 billion for Daimler. Subtract a reasonable price for Daimler’s truck business — the world’s biggest — and the value investors assign to Mercedes stands at about 25 billion euros.

“The market is saying that the prospects for Mercedes are much worse than for BMW,” said Hans-Peter Wodniok, an analyst with Fairesearch in Kronberg, Germany. “The market’s always right. In terms of innovation, BMW is the leader.”

Lagging growth in China, sluggish expansion into popular segments like compact sport-utility vehicles, and an image that lacks appeal for younger drivers have hindered Mercedes, allowing BMW and Volkswagen AG (VOW)’s Audi to widen their sales lead in the luxury segment.

The growing gap comes a year after Zetsche, whose current contract expires at the end of 2013, vowed to almost double deliveries to 2.6 million vehicles by the end of the decade and regain the top spot, which Mercedes ceded in 2005.

The push has gotten off to a rocky start. Zetsche postponed a longstanding Mercedes profit goal in October, putting the target at least four years behind its original schedule. After earnings slumped this year, Mercedes initiated a drive to cut costs by 2 billion euros by 2014 under a program dubbed “Fit for Leadership.”
BMW Bid

BMW’s surge has overturned the historical pecking order in the German auto industry. Daimler, which tried to take over BMW in 1960, had a market capitalization 15.5 billion euros higher than BMW’s just two years ago. Today, assuming a price of roughly 20 billion euros for its truck business based on comparisons with rival truckmaker Volvo AB (VOLVB), investors value Mercedes at 22 billion euros, or less than half BMW’s worth, according to Bernstein Research.

“The market’s confidence in Daimler management is pretty much at rock bottom,” said Max Warburton, a Bernstein analyst in Singapore. “Investors have little or no confidence that current management will be able to do what is necessary to close the gap to BMW.”
Brazil Factory

Unruffled by the debt crisis in Europe, BMW continues to expand, planning a new factory in Brazil and readying models for 2013 like the 4-Series coupe and the electric-powered i3 city car. Through November of this year, BMW sold 1.39 million vehicles versus 1.19 million for Mercedes, widening its lead to 193,400 cars for the period from 115,700 a year earlier.

BMW booked 6.41 billion euros in operating profit for the first nine months of 2012, 112 million euros more than Daimler even though revenue for the Mercedes parent was 28.2 billion euros — 50 percent — higher.

“BMW earns more with just cars than Daimler does with cars and trucks,” said Juergen Meyer, a portfolio manager at SEB Asset Management in Frankfurt, whose fund owns shares in both automakers. “For us investors, profit counts.”

Since Zetsche took over as CEO in 2006, Daimler shares have slipped about 10 percent while BMW’s have surged 89 percent. BMW, based in Munich, trades at 9.1 times next year’s earnings, versus 8.3 times for Daimler, based in Stuttgart, Germany.
Automaking Roots

About 68 percent of analysts rating BMW recommend buying its shares, compared with 40 percent for Daimler, according to data compiled by Bloomberg. The average price target for BMW stock is 75.70 euros, 6.9 percent more than yesterday’s closing price, while Daimler is seen as having potential to rise 3.1 percent over the next 12 months to 40.88 euros.

Daimler is moving to catch up. Next year, it will overhaul the Mercedes S-Class flagship and introduce the CLA compact four-door coupe to attract entry-level drivers. The manufacturer pressed ahead with an exit from European Aeronautic, Defence & Space Co. (EAD), the parent of plane manufacturer Airbus, as part of Zetsche’s efforts to focus Daimler on its automaking roots. It is also deepening cooperation with Renault SA (RNO) to cut costs.

“We have very clear strategies for all our divisions focused on both growth and efficiency,” said Florian Martens, a spokesman for Daimler.

To revive growth in China, where Mercedes has lagged BMW and Audi, Daimler this week appointed Hubertus Troska to a new management board position to oversee operations in the world’s largest car market. As part of the effort, Daimler is combining two separate sales units — one for imported vehicles and another for locally made cars — into a single entity.

Audi, the luxury-car leader in China, can draw on Volkswagen’s resources in the country to expand. And BMW opened a new factory in Tiexi as part of a plan to quadruple production to as many as 400,000 vehicles in the country.

Nonetheless, the potential of the Mercedes brand in China is “ overwhelming,” said Yale Zhang, managing director of consultancy Automotive Foresight in Shanghai. “Every consumer understands the value of Mercedes and the logo.” ”

Video here; http://www.bloomberg.com/news/2012-12-14/mercedes-valued-at-half-of-bmw-as-zetsche-loses-investors-cars.html

BMW About To Unleash Oodles Of Diesel Goodness On America

From Jalopnik;
“We love diesels. They’re torquey, easy to live with, and have some of the best fuel economy on the road. The best part? They aren’t wimpy little hybrids.

Now, BMW is planning on bringing a whole mess of diesel models to the US in the next two years, and one of them is a diesel wagon. Color us excited.

BMW North America recently had a meeting to lay out some products that are earmarked for the United States through 2014, and thanks to a photo taken by a member of VW Vortex, it looks like a plethora of oil burners will be available for you fine folks.

The first two cars are 3-series based, and it includes a 3-series wagon. A 5-series diesel and X5d will follow soon after.

In 2014, the car that makes the most sense is coming: A 7-series diesel. Diesel is smooth and quiet, so for an executive car driven by a chauffeur, it makes perfect sense. Now, we’re not sure which engines Bimmer has earmarked for America, but we’d expect the diesel four cylinder in smaller models and perhaps the diesel six cylinder in the X5, 7-series, and 5-series.

But who knows, maybe a hot rod six cylinder diesel 3-series is in the plans. Anything is possible.

BMW famously makes some great diesels, so this is a boon for pretty much every BMW customer in America. Hopefully they follow through and actually bring them here.

Photo Credit: BMW”

Woohoo!!!!!!

BMW Reveals V-12 Powered Z3 Prototype

From motorauthority;
“BMW’s Z3 roadster, built from 1996 – 2002, wasn’t exactly the Bavarian automaker’s finest effort. Essentially a parts-bin car, it’s primary claim to fame was affordability, and it was relatively successful in bringing the BMW roundel into a new batch of buyers’ garages.

Early Z3s were underpowered, equipped with a 1.9-liter four-cylinder engine that produced a modest 138 horsepower. By the second year of production, a more powerful 2.8-liter in-line six debuted, offering a semi-impressive 189 horsepower.

Later M versions of the car delivered as much as 240 horsepower, raising its entertainment value considerably. As photos released by BMW M on Facebook show, however, the Munich automaker may have once considered a V-12 option for its two-seat roadster.

Three images show a BMW M-built Z3, powered by what’s likely a 5.4-liter M73 V-12. Used in the E38 7-Series, the E31 8-Series and even the Rolls-Royce Silver Seraph, the aluminum-block engine would have produced in the neighborhood of 326 horsepower and 361 pound-feet of torque.

Despite its aluminum block construction, it also would have put a significant amount of weight over the front wheels, which isn’t exactly a good thing in a short-wheelbase, rear-drive roadster. BMW isn’t providing details on the car, so we suspect it was built simply as a proof of concept, to show that a production V-12 could be shoehorned into the Z3.

If production was ever considered (and that’s a big if, given the cost of the V-12 engine), we’re pretty sure that handling issues killed the project in its infancy. Still, we’d be willing to give it a go on a dry racetrack with lots of runoff room.”

More pics here; http://www.motorauthority.com/news/1078303_bmw-reveals-v-12-powered-z3-prototype

More on BMW’s new tri-turbo diesel setup

Some good looks at BMW’s new tri-turbo diesel architecture. Also, good articles on BMW’s M’s.

Link here; http://www.m-power.com/_open/b/varlink1.jsp?id=2658&lang=en

Rumor: BMW X6 M50d 0-62mph in 4.9 sec and 545 lb-ft of torque…38mpg!!

From bmwblog.com; “BMWBLOG learned from our sources that the new and first M diesel, the BMW X6 M50d, will run from 0 to 62 mph (100 km/h) in 4.9 seconds. Furthermore, we learned that the car will output 381 horsepower and 545 lb-ft of torque (740Nm).

The X6 M50d will come equipped with an innovative and unique engine, a tri-turbo six-cylinder diesel. The internal code for the BMW X6 M50d is FH81 and production will begin in April 2012.

The M division will offer the M50d with a revised front hood, included as option number 348.

But this is not all. We also learned that the “step-brother”, BMW M550d xDrive will also be equipped with the same powerplant, running to 62 mph in 4.7 seconds. Thanks to the innovative diesel technology, BMW expects a fuel consumption of 6.3 liter per 100 km, or nearly 38 MPG. CO2 levels are 165 g/km.

The FV71 M550d will go in production in March 2012 and will be offered as an European only model.”

Of course, European only. 😦

2012 BMW 550dx(tri-turbo!) to be AWD torquemonster with 516 lb-ft

From autoblog.com; “A BMW dealer in the Netherlands has leaked what it says is a tasty bit of information on the upcoming diesel 5 Series. According to 5post.com, the vehicle will boast a tri-turbo inline six-cylinder oil burner good for around 381 horsepower. That number is a far cry from the 500-pony speculation that had been making the rounds until recently, but that doesn’t mean that the big 5 Series will be any slouch on the road. The dealer also let slip that the vehicle will arrive packing 516 pound-feet of torque, which should be more than enough for the big sedan’s all-wheel drive system to rip up massive handfuls of asphalt to throw at lesser machinery.

Speaking of all-wheel drive, word has it that the 550d will only be available with all four corners turning, at least initially. Production is set to kick off in March of next year, and true to form, there’s no telling whether or not the big, powerful diesel will be available to U.S. buyers. There’s also some indication that this potent engine will show up in hardware like the next-generation BMW X5 and X6, though there are no fuel economy estimates to be had at this time. Presumably, a Touring variant like the one shown above will be on offer overseas, as well, making it this Bimmer a covet-worthy alternative to a premium crossover.”

BMW Confirms Diesel-M, High-Performance Engine to Find Numerous Other Applications

Courtesy of thedetroitbureau.com;
“Editor’s note: The following story has been revised to make clear that BMW M Manager Brian Watts did not himself confirm the diesel program has been approved but is only under consideration. However, ranking BMW sources have repeated their confirmation that what is tentatively being called the BMW 550dXM will be publicly revealed in spring 2012.

BMW will introduce a new high-performance diesel-powered 5-Series model next spring that will expand the German maker’s vaunted M division, TheDetroitBureau.com has confirmed, with the triple-turbo V-8 oil-burner set to also be used in a variety of other BMW products, likely including its X-series sport-activity vehicles.

Rumors of the diesel M have been circulating for several weeks, but TheDetroitBureau.com has confirmed details with a variety of BMW sources who say the maker wants to prove out the potential of the high-mileage technology – taking advantage of a variety of new technologies, including the unusual triple-turbocharging system meant to eliminate even the most minor turbo lag.

The new model is likely to get the unusual designation of either BMW 550dM or 550dXM, the latter referring to its all-wheel-drive system. With rare exception, most models produced by the Bavarian maker’s performance sub-brand flash the vaunted “M” first and foremost. But the alternative nomenclature would reflect the unusual powertrain under the hood of the 5-Series BMW.

The 3.0-liter straight-six diesel will use a small turbo to instantly build boost for launch, two larger twin-scroll turbochargers then spooling up for higher-speed performance. The basic engine is the same as the current BMW 3.0-liter diesel but with significant modifications, including a new cylinder head. It will make use of a variety of advanced technologies, including direct injection and BMW’s Valvetronic system, designed to optimize the function of intake and exhaust engine valves.

Sources tell TheDetroitBureau.com that the 550dM will deliver slightly less horsepower than the new gas-powered BMW M5, which makes 560 ponies. Final numbers will likely be in the 500 to 550 range. Torque, meanwhile, will well exceed the 500 lb-ft of the new M5, and could push north of 650 lb-ft.

To handle those tire-spinning forces, “You have to go to all-wheel-drive,” explained one senior BMW official, “otherwise you’ll be spinning your tires all day.”

While several makers have demonstrated the potential for diesel power on the track, the move to put it into a high-performance street car is a significant breakthrough. Mercedes-Benz briefly offered a diesel model wearing its AMG badge but that lasted only a year on the market. BMW has long considered the option but it took several significant developments for the company’s comfort level to reach the necessary threshold.

“Diesel technology has come a long way in the last five years,” said one BMW executive, adding that the maker also had to be certain buyers would be able to get the necessary quality of diesel fuel in any market – notably including the U.S. – where the 550dM will be sold.

For the record, M brand global marketing manager Brian Watts confirmed only that the maker is looking at a diesel M car because it “certainly has some interesting potential.” He stressed that the review is “not finished.” But other insiders said only the final details, such as performance specifications – and the final brand nomenclature – have yet to be firmed up, with the new diesel muscle car due for a reveal next spring, very likely with an unveiling at a major auto show like the Geneva Motor Show.

The engine is intended to find applications beyond the 5-series M edition, sources agree. It is designed to fit in a variety of additional BMW products and would most likely show up next in one or more of the maker’s X-Series Sport-Activity Vehicles, such as the X5 or X6. But a version of the 550d engine might also be melded with the maker’s flagship 7-Series sedan “a year or more later,” said a source.

BMW officials say they hope to steal a march on competitors – but, said one, “I expect to see others follow,” a reference to both Mercedes and Audi. The executive said he was particularly surprised that the latter German brand had not moved into the diesel performance segment more quickly, as it would play off Audi’s link to diesel power. The maker has dominated the Le Mans endurance series for much of the past decade with its various diesel-powered race cars.”