The Daimler AG and BMW Group are launching their cooperation on automated driving: representatives from the two companies today signed an agreement for a long-term strategic cooperation, which will focus on joint development of next-generation technologies for driver assistance systems, automated driving on highways and automated parking (all to SAE Level 4). In addition, further talks are planned to extend the cooperation to higher levels of automation in urban areas and city centres. This underscores the long-term and lasting nature of the undertaking, which will extend to encompass a scalable platform for automated driving. The non-exclusive cooperation is also open to other OEMs and technology partners, with results being made available to other OEMs under license.

A key aim of the cooperation is the swift market launch of the technology, which is expected to feature in passenger car systems for private customers from 2024. The two companies will each implement the technologies in their respective series products independently. The cooperation will see more than 1,200 specialists working together, often in mixed teams. They will be based at locations including the Mercedes-Benz Technology Centre (MTC) in Sindelfingen, the Daimler Testing and Technology Centre in Immendingen and the BMW Group Autonomous Driving Campus in Unterschleissheim, near Munich. Efforts will focus on developing a scalable architecture for driver assistance systems, including sensors, as well as a joint data centre for data storage, administration and processing, and the development of functions and software.

Safety First for Automated Driving

Along with Aptiv, Audi, Baidu, Continental, Fiat Chrysler, HERE, Infineon, Intel and Volkswagen, the BMW Group and Daimler have published a white paper entitled Safety First for Automated Driving. As well as covering all relevant safety methods for Level 3/4 SAE automated driving, the paper introduces a traceability system, which extends from the primary goal – being safer than the average driver – right down to the individual safety objectives of the various components. The paper was published on 2 July 2019.

Automated driving at Daimler AG:

Daimler AG has been working on series development projects not only for specific Level 3 vehicles but also for Levels 4 and 5. Long a leader in active safety systems, it programmed its systems largely in-house right from the very beginning. 2019 will see the launch in San José, Silicon Valley, of its first pilot programme, with Bosch, on self-driving vehicles (Levels 4/5) in urban environments. This will be the next milestone within the existing cooperation between both partners and the cooperation will continue as planned. Early next decade, Daimler will bring to the market not only highly automated (Level 3) vehicles but also fully automated (Level 4/5) vehicles. It is the only OEM in the world to be so well-positioned to apply autonomous driving in every relevant context, from passenger cars and vans to buses and trucks, and is therefore relying on scalable solutions to deliver automated driving.

Automated driving at the BMW Group:

The BMW Group has been working on highly automated driving since 2006 and has established a non-exclusive platform with technology specialists, suppliers and OEMs to take it to series maturity. Since 2017, work in this area has been consolidated at the Autonomous Driving Campus in Unterschleissheim, just north of Munich, and the industrialisation of the technology is being advanced with the support of partners. The technology’s unique scalability from Level 2 – 4 both enables a high level of flexibility and ensures it will be viable in the future. Cutting edge agile software development is used at the Campus to speed up development of the platform and set new industry standards. Around the world, more than 70 test vehicles are trialling the latest technology. They collect data in order to improve machine learning with artificial intelligence through simulations and test new Level 2 – 5 functions out on the road. The generation of technologies that is currently under development will go into series production as Level 3 automation in 2021 in the BMW iNEXT where it will also be Level 4 enabled for pilot projects.

AUDI AG, the BMW Group and Daimler AG have agreed with Nokia Corporation that they will acquire its mapping and location services business HERE. The acquisition is intended to secure the long term availability of HERE’s products and services as an open, independent and value creating platform for cloud-based maps and other mobility services accessible to all customers from the automotive industry and other sectors. The three partners will each hold an equal stake in HERE; none of them seeks to acquire a majority interest. Subject to the approval of the relevant antitrust authorities, the transaction is expected to close in the first quarter of 2016.

HERE is laying the foundations for the next generation of mobility and location based services. For the automotive industry this is the basis for new assistance systems and ultimately fully autonomous driving. Extremely precise digital maps will be used in combination with real-time vehicle data in order to increase road safety and to facilitate innovative new products and services. On the basis of the shared raw data, all automobile manufacturers can offer their customers differentiated and brand-specific services.

“Our environment is constantly changing. That’s why the information in digital maps has to be continually updated so that maximum utility can be offered,” stated Rupert Stadler, Chairman of the Board of Management of AUDI AG. The high-precision cameras and sensors installed in modern cars are the digital eyes for updating mobility data and maps; in this way, information such as speed limits or critical driving situations are already recognized today. All data gained will be processed in compliance with strict data-protection rules.

“HERE will play a key role in the digital revolution of mobility, combining high definition maps and data from vehicles to make travel safer and easier for everyone,” explained Harald Krüger, Chairman of the Board of Management of BMW AG.

This knowledge will be to the benefit of all carmakers and their customers. “High-precision digital maps are a crucial component of the mobility of the future. With the joint acquisition of HERE, we want to secure the independence of this central service for all vehicle manufacturers, suppliers and customers in other industries,” stated Dieter Zetsche, Chairman of the Board of Management of Daimler AG.

Swarm intelligence will create new information density for road maps

“HERE will be able to offer users a continuously improving product, bringing highly automated driving and location based services a step further. As the volume of anonymized data from the vehicles increases, services will become more convenient, more connected and further tailored to the users’ individual requirements,” said Ulrich Hackenberg, Member of the Board of Management of AUDI AG for Technical Development, Klaus Fröhlich, Member of the Board of Management of BMW AG for Development, and Thomas Weber, Member of the Board of Management of Daimler AG for Group Research. It is the explicit intention that all HERE customers are to benefit from this continuous optimization.

The social benefits of swarm intelligence are enormous: They facilitate warnings of hazards in real time, of icy roads for example, based on calculations of individual data such as ABS activations and outside temperature. Upcoming traffic jams will be identified more precisely in the future, significantly reducing the risk of accidents. In this way, the vision of accident-free driving is gradually becoming reality. In a further stage, the data could be used to learn about critical bends on the road, in order to warn drivers in good time or to activate assistance systems. Anticipation of green phases of stoplights could navigate vehicles through an urban area on a “green wave” with the appropriate engine performance and minimized fuel consumption.

High-precision maps are important for autonomous driving and many other forms of assistance systems, as these technologies require an up-to-date plan of a vehicle’s surroundings exact to the nearest centimeter, in order to react in real time. While HERE already produces extremely precise static maps, they can be verified more exactly and continually updated with a constant flow of data from vehicles’ surroundings.

HERE will continue to offer its services and products across industries

HERE provides mapping and location intelligence for nearly 200 countries in more than 50 languages and is one of the main providers of mapping and location services. The company will continue to develop its position as a strong and independent provider of maps and location-based services, will expand its product offering and continue to make it available to all customers across industries.

The management of HERE will continue to be independent – with the goal of moving the HERE business case forward as a platform, open to all customers. The consortium will not interfere into operational business.

Mercedes-Benz saw sales surge 11 percent in January, giving them the lead over BMW in U.S. luxury auto sales for the year.

In January, Mercedes delivered 22,501 vehicles, its best January to date.  Boosting their sales was the C-Class sedan, which rose 11 percent to 7,214 vehicles sold.

As for BMW, vehicles sales increased 0.7 percent to 16,513 vehicles, boosted mainly by a 56 percent gain for its X5 sport-utility vehicle. Toyota Motor Corp.’s Lexus rose 32 percent to 16,211, led by the ES sedan, which more than doubled to 5,186 deliveries.

Mercedes-Benz and BMW are both fighting against each other to be the top luxury auto brand in the U.S., less concerned with Lexus after outselling them the past two years. In 2012, Mercedes led in sales at the end of November, but with a late December sales surge, BMW took its second consecutive U.S. luxury crown. Lexus was the top-selling luxury brand in the U.S. for 11 years until natural disasters in Asia curtailed production in 2011.

“We’ve set another record this January and are breaking into 2013 at a strong sales pace,” Steve Cannon, CEO of Mercedes-Benz USA, said in a statement.

The sales results don’t include Daimler’s cargo vans and Smart cars and BMW’s Mini brand, which aren’t luxury vehicles.

Source: Autonews

After reporting news that MBUSA was ahead of BMW in U.S. Sales, recent reports from Bloomberg have emerged that Mercedes-Benz is not in the same position on the global market.  In global luxury sales, Mercedes-Benz is falling further behind rivals BMW and Audi because of a disjointed strategy in China, sluggish expansion of entry-level models and an aging S-class sedan, the once-dominant upscale nameplate remains firmly in third place.

The Mercedes sales gap with second-placed Audi has more than doubled within a year, hampering Chief Executive Dieter Zetsche’s pledge to retake the lead.

“Mercedes’s problems are home-made problems,” said Christian Ludwig, an analyst with Bankhaus Lampe in Dusseldorf. “It’s going to be extremely difficult for Mercedes to reach the No. 1 spot. The others are not sleeping.”

Mercedes delivered 964,900 cars and sport-utility vehicles worldwide through the first nine months of 2012. The 5 percent gain failed to keep pace with rivals, meaning it lagged Audi by 132,600 vehicles, up from 53,900 a year ago. The gap to No. 1 BMW widened 41 percent to 145,000 vehicles, according to data from the carmakers.

In September 2011, Zetsche sought to cap the celebrations for the automaker’s 125th anniversary by setting the goal for Mercedes to become the best-selling and most profitable luxury-car brand by 2020. At the time, he said it was “impossible” for the brand to accept being third.

Profit drop

One year on, Zetsche’s tone was less jubilant. He said on Sept. 20 that earnings before interest and taxes at the Mercedes car division would fall and not match last year’s figure. In response, the manufacturer is planning a savings drive dubbed “Fit for Leadership.” At the Paris auto show last month, Zetsche didn’t reaffirm a Mercedes’s target for 2013 operating profit of 10 percent of sales.

Mercedes has been trailing since losing the top spot in the luxury-car segment to BMW in 2005. The Daimler unit’s sales will have advanced 19 percent through this year, compared with a 31 percent jump by BMW and a 70 percent surge by Audi over the past seven years, according to IHS Automotive estimates.

The failure to keep pace is reflected in the stock. Daimler’s 12 percent increase over the past 12 months trails BMW’s 18 percent gain and Audi parent Volkswagen’s 44 percent surge. Daimler trades at 7.5 times estimated earnings versus 8 times for BMW.

Zetsche is seeking to reverse the trend by adding less-expensive compact models, including a four-door coupe and a sport-utility vehicle, to attract younger buyers and by expanding the range of variants of the S-class flagship, which is in the last year of the current generation.

Dealer traffic

The new compact A-class hatchback lured 700,000 people to showrooms when it went on sale last month. The company has about 70,000 orders so far for the car, which starts at almost 24,000 euros ($31,000) compared with about 17,000 euros for the segment-leading VW Golf.

“Daimler is saying that the demand for its new A-Class is great, but these are mostly orders from dealers,” said Hans- Peter Wodniok, analyst at Fairesearch in Kronberg, Germany. “The price of the compact is quite high, and it remains to be seen if the market accepts it.”

Even with the premium price, Daimler is preparing for high demand, signing up Finland’s Valmet Automotive Inc. to produce more than 100,000 A-class cars. The external production is on top of 1.4 billion euros spent to upgrade a small-car factory in Germany and build a new one in Hungary. Daimler plans at least five compact models in the coming years including the newly introduced A- and B-class cars to take on models like the BMW 1-series coupe and the Audi Q3 SUV.

Filling gaps

“We have holes in our portfolio that we are closing successively,” Joachim Schmidt, Mercedes’s sales chief, said in an e-mail response to questions. “When I look into the future, I see that we have excellent prerequisites to be the leading premium manufacturer by the end of the decade.”

To reach that goal, Mercedes will need to boost growth in China, where deliveries edged up 6.7 percent this year, compared with gains of more than 30 percent for BMW and Audi.

“China is definitively a problem area,” said Marc-Rene Tonn, a Hamburg-based analyst with Warburg Research. “They have to take action.”

For a start, Zetsche is combining two separate sales units — one for imported vehicles and other for locally made cars — into a single entity. Sales chief Schmidt said the goal of the restructuring is to grow “significantly” in China again. Mercedes’s efforts to expand its appeal with new models and re-spark growth in China are expected to bear fruit and offset plans by BMW to add a factory in Brazil and by Audi to expand in Mexico. IHS forecasts Mercedes increasing sales 34 percent between 2012 and 2015, compared with Audi’s 12 percent gain and BMW’s 26 percent rise.

“Globally, the relatively old product range weighs on sales,” said Frank Schwope, an analyst at Norddeutsche Landesbank in Hanover. “The current revamp of the A class and soon of the S class will have a positive effect.”

BMW AG recently reported that the car manufacturer sold 21,297 of its flagship-brand cars in the U.S. this July. The problem is, those numbers are not nearly as straightforward as they appear.

In an effort to edge out Mercedes-Benz, hundreds of BMWs were counted as sold in July, even though they remain in showroom inventories and according to dealerships are still being advertised for sale as new cars.

The reason for the strange reporting is that the company made a special offer to dealers on July 31. For only that day, dealers were able to receive discounts of up to $7,000 per 2012MY car as long as the vehicle was reported sold that day.

As The Wall Street Journal reported, the number of such deals raises questions about the accuracy of the company’s reported sales, a closely watched figure as BMW and rival Mercedes-Benz vie for the title of top-selling U.S. luxury brand.

Kenn Sparks, a BMW spokesman, said its July sales total includes vehicles that were purchased by its dealers for use as what are known as “demos”— cars used on lots for test drives.

He declined to say how many reported sales were demos, saying BMW doesn’t release the figure. “These vehicles may stay on the lot because they are used as demo models,” he said.

Car companies, which book revenue when they ship to dealers, are known for using a variety of tactics to improve sales beyond what consumers purchase, such as cut rate deals with rental-car fleets and incentive that get dealers to stock more vehicles than they need.

But piling up cars on dealer lots and offering discounts can backfire. While sales may rise for a month or two, they often fall once the effort comes to an end. Dealers call this “payback.” Discounting also can erode a car maker’s profit margins.

BMW’s incentives appeared to help propel the car maker to a 1,900-vehicle lead over Daimler AG’s Mercedes-Benz, which has battled BMW for the U.S. sales crown for a year and has beefed up demo sales. On Aug. 1, BMW reported July sales spiked for the vehicle types eligible for the demo discounts. It sold 1,696 of its 7 Series sedans in July, the highest monthly total so far this year, and triple the June total of 539. For the 3 Series coupe, which had demo discounts totaling $3,200, sales climbed to 2,555 cars, up from 1,222 in June and that vehicle’s highest total for the year.

Dealers said they believe a few thousand BMW vehicles were sold as demos. The auto maker reported it sold 21,297 vehicles in July compared with 19,312 for Mercedes. BMW’s Mr. Sparks said BMW doesn’t break out sales of demonstration vehicles.

Mr. Sparks said demo models should be clearly marked and sold as used cars. But managers who own or oversee more than a dozen BMW dealerships said they routinely offer the vehicles as new and that BMW’s U.S. sales unit approves of the practice.

Several managers at BMW dealerships said they had no customers lined up to buy or lease the demo cars, but reported them as sold to lock in the discounts. “If I don’t take them, then I’ll be at a disadvantage to my competitors,” one dealer executive said.

At New Century BMW in Alhambra, Calif., the retailer has “a handful” of 7 Series large sedans that were reported to BMW as sold in July, Internet salesman Justin Wong said. “They are new cars. They are not used,” he said.

“We put a few into the loaner fleet,” one of the dealership managers said. “But most we just move as quickly as we can” as new cars.

Several dealers said the demo discounts are to help clear 2012 model-year cars now that 2013 vehicles are starting to arrive. “We’re trying to make it easier for dealers to retail cars by giving a great deal to the consumer,” Mr. Sparks said.

Several dealers said if BMW’s North American region can show that its stock of 2012 vehicles is depleted, it has a better chance of convincing top BMW executives to allocate a large portion of the 2013 models now rolling off assembly lines to North America, these dealers said.

“If you don’t sell the cars in North America, they’re going to send them to China,” Mr. Wong said. “Everybody is fighting for allocation.

Geoff Day, a Mercedes spokesman, said the auto maker has included in its U.S. monthly sales reports about 500 cars that were shipped to dealers as demonstrator models in June and July combined.

Most auto makers require dealers to keep demo cars for three to six months before they can be sold to customers, a period that can vary by model. Honda Motor Co. requires dealers to keep demo models for at least six months before they can be sold to consumers, and they must be sold as used vehicles. Last year, General Motors Co. GM required Chevrolet dealers to stock at least one Volt electric car as a demonstration model and more than 1,000 were shipped as demos. But GM only counted them as sold when they were delivered to customers, a spokesman said.

In the past, GM, Ford Motor Co. and Chrysler would lease thousands of cars a month to rental-car companies for very little. They counted those vehicles as sold. Then after a few months, the car companies took the rental cars back and passed them on to dealers that sold them as used cars.

One well known case of sales inflation occurred in 1998, when GM’s Cadillac brand and Ford’s Lincoln division racing to claim the top spot in luxury-car sales. Cadillac was trailing but its sales suddenly surged in December and it took the crown. Months later an embarrassed GM acknowledged that the Cadillac unit had purchased vehicles itself from its dealers, boosting the reported total.

Last year, BMW edged out Mercedes as the top-selling U.S. luxury car. At the end of November, Mercedes was ahead of BMW for the year. When it came time to report December sales totals, each company balked for 24 hours, hoping to force the other to go first.

Finally, Mercedes disclosed that it had sold 25,701 cars in December, and 245,192 for the year. Shortly thereafter, BMW said it had sold 26,834 cars in the month, enough to push its full-year total to 247,907 and claim the luxury-car sales crown.

Mr. Sparks said he is unaware of any discounts that were aimed at driving demo sales last December.

Dealers said BMW’s July sales total was helped by special discounts for 2012 models that the auto maker announced on the morning of July 31, the final day of the month.

Such discounts aren’t usually advertised and are known among dealers as “trunk money” and described by BMW as “allowances.”

They ranged last month from $2,500 on the 528i rear-wheel and all-wheel drive sedans to $7,000 for any 7 Series sedan, according to a memo BMW sent to dealers, a copy of which was reviewed by The Wall Street Journal.

The discounts were available on cars that dealers reported as sold on that day, July 31. They also had to be reported or “punched” “as “Specialty Demo,” a classification in BMW’s sales reporting system that doesn’t require the dealer to enter a customer name, dealers said.

The two-page memo doesn’t state whether the cars must be sold to customers as used vehicles.