When Nissan and Chrysler announced a deal yesterday that they will build more cars for each other, it naturally fueled speculation that some bigger merger or alliance isn't far off. On paper, a long-term merger or alliance between Renault-Nissanor an outright buyoutwould make sense for Chrysler. Without a big partner like Daimler AG (even though that was a truly bad marriage) Chrysler is missing some huge pieces needed to be a competitive carmaker. That became more apparent yesterday when Chrysler forged a deal with Nissan to get a subcompact car from the company. Beyond some help in small cars, Chrysler needs the cash and credit rating of a bigger healthier player. Without a big infusion of fresh cash, Chrysler will have a tough time affording the new technology needed to meet both future fuel economy rules and to make efficient vehicles that consumers are demanding as our gasoline prices inch toward the stratospheric pump prices Europeans have endures for years. Already, Chrysler relies on Daimler for clean diesel engines and General Motors for hybrid technology. Even making a new engine is costly. Owner Cerberus stocked Chrysler with a slug of money, but new technology can eat that up quickly, especially when the companys day-to-day operations are burning cash. Next, it is becoming tougher and tougher to compete against bigger global players like Toyota, Honda, GM, Volkswagen and Ford, all of whom can spread development costs over big sales volumes across the globe. Chrysler is, by comparison, a small regional carmaker. It doesnt sell much outside the U.S. and doesnt have the resources to quickly expand into growth markets. A deeper, more permanent tie-up with Renault-Nissan, or even just Nissan, could go a long way toward solving all of that. Chrysler could piggy back the sales volumes of Renault-Nissan to get lower prices on parts, steel, aluminum, you name it. Nissan also has its own diesel engines and a hybrid system developed in-house that both hit the market around 2010. Chrysler could get a crack at that hardware. But like the late, great author Kurt Vonnegut wrote, there are Booby Traps Everywhere. Renault-Nissan CEO Carlos Ghosn has managed to get a French company to work pretty well with a Japanese company. What happens when you pull a distinctly American culture into the mix? Can they work together?  read more »

Bayerische Motoren Werke AG, the world's largest maker of luxury vehicles, unveiled a new version of its top-end 7-Series sedan, hoping demand from Chinese and American drivers will make up for higher steel and oil costs.

BMW's flagship model ``will contribute a great deal'' to achieving the automaker's 2012 profit targets, Chief Executive Officer Norbert Reithofer said at an event in Munich to introduce the car. The fifth generation of the 7-Series will go on sale this fall, with a range of new technology, including four-wheel steering, in-car Internet access, and a night-vision feature that warns drivers of people near the roadway.

The company has a program in place to cut spending by 6 billion euros ($9.4 billion), including the elimination of 8,100 jobs, to help increase its return on sales in automaking to 8 percent and 10 percent by 2012 from 6 percent in 2007. Since Munich-based BMW announced the target in September, oil futures have jumped 87 percent and steel prices have climbed 63 percent.  read more »

Apparently, we were more prescient (or slow) than we thought when we asked "Who Should Tata Buy Next?" It turns out that, as part of the Ford-Tata deal, Tata ended up owning not only the Jaguar and Land Rover brands, but also Daimler, Rover and Lanchester. Someone is going to have to re-do that chart. The story of how the names have transfered is kind of hilarious and featured under the jump. It also may have played into the mysterious $300 million that evaporated from the big deal this week.  read more »

After a long wait, Maybach 62 S Landaulet will actually take shape has the Daimler is intending to take it to the production level. It is an open-air version of the ultra-luxury 62 S sedan that was first shown in November. The global head of sales for Mercedes , Klaus Mair, has said, Maybach hopes the Landaulet will help draw more attention to the brand. Technically speaking, the Landaulet is powered by the upgraded V12 engine that Maybach engineers developed for the Maybach 57 S and Maybach 62 S . Thanks to twin turbochargers and water intercooling, the V12 develops a maximum output of 612 hp and 738 pound-feet of torque. Roll over for more images and also to know its estimated price tag.. Although the company is uncertain about howmany of them will be created, they have surety from anxious customers who are ready to buy it at 800,000 euros ($1.2 million) each.  read more »

Big-bucks enthusiasts annoyed that they're not the only ones at the club with a Veyron can now ensure that they arrive in total exclusivity. That's because the one-off Maybach Exelero , commissioned by Fulda to act as a high-profile demonstrator for its tire line of the same name, is now for sale. The Exelero isn't some delicate flower of a show car.  read more »

DETROIT (Reuters) -- Chrysler on Thursday said a loss for the automaker as reported by minority owner Daimler did not reflect its operating profitability during its first months as a private firm.

Daimler had reported on Wednesday that the Detroit-based automaker sustained a net loss equivalent to