Daimler, Tesla Business Relationship to Expand Despite Electric Car Woes?

Oct 31, 2013 12:13 PM EDT | Matt Mercuro

Daimler AG, the parent company of Mercedes-Benz, said this week that it is looking to expand its cooperation with Tesla Motors Inc, the U.S. electric-car maker, according to Reuters.

Tesla is currently providing electric motors and batteries to Daimler for vehicles like the Smart Fortwo EV and the new Mercedes-Benz B-Class EV, which goes on sale in the United States and Europe next year.

"I told my guys, go back to Tesla and look for other opportunities," said Bodo Uebber, Daimler's chief financial officer, said at a press briefing. "We want to look for more cooperation."

Daimler recently launched its new CLA compact and is get ready to add a GLA compact crossover in early 2014. Uebber said the company is "already reviewing plans for its next generation of small vehicles, due around 2018," according to Reuters.

Daimler is in the middle of discussing "different strategies" for building the next-generation compacts in Mexico with partner Renault-Nissan, "but no decision has been made, according to Uebber.

Uebber added that the CLA, the GLA and at least one more vehicle coming in 2015 are "crucial" to Daimler's growth, especially in places like the U.S. and China.

"We are a late comer (to the small premium segment) but we need compact cars to get a broader, younger customer base," Uebber said.

Daimler will also introduce more derivatives of recently redesigned S-Class vehicles, including a large coupe and a "long-long-wheelbase" sedan that will be sold in China, Europe, and the U.S.

Daimler's U.S. plant in Alabama will start producing the redesigned C-Class sedan in 2014, along with a new SUV in 2015.

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