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Mercedes-Benz Reportedly in Talks to Source BMW Engines Amid Weak Sales

After decades of rivalry, Mercedes-Benz and BMW may soon find themselves in an unlikely partnership. According to a report by Manager Magazin, Mercedes is exploring the possibility of sourcing four-cylinder engines from BMW, a move that would mark one of the most surprising shifts in the modern automotive industry. While BMW has not confirmed the development, industry insiders suggest that discussions have been ongoing for nearly a year.

The timing of these talks comes as Mercedes faces financial headwinds. At the end of July, CEO Ola Källenius reported weaker-than-expected results, with profit margins in its passenger car business dropping to 3.2 per cent during the second quarter. Sales for the first half of the year stood at just 900,000 units, the lowest since 2020. Internally, Källenius told his management team that cost-cutting alone would not be enough if the company lacked the right products to meet demand.

One of Mercedes’ immediate challenges lies in its engine supply. The Stuttgart-based brand underestimated the number of combustion engines required to support its plug-in hybrid models. Initially, Mercedes sought to cover the shortfall by sourcing four-cylinder units from Geely in China, but political sensitivities in key markets such as the United States have made the use of Chinese-built engines increasingly problematic. This has pushed the company to explore cooperation closer to home, with BMW emerging as the most viable option.

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BYD Opens World’s Largest Driving Experience Centre in Zhengzhou

Chinese automaker BYD has unveiled what can only be described as the ultimate playground for car enthusiasts, a sprawling all-terrain driving experience centre in Zhengzhou. The facility combines a race track, off-road courses, water challenges, and even a Guinness World Record-certified sand incline, making it unlike anything offered by other car manufacturers, including Europe’s most prestigious brands.

At the heart of the centre lies a 1.7-kilometre circuit featuring nine corners and a 550-metre straight. The design allows BYD’s most powerful models, including the all-electric YangWang U9, to hit speeds of up to 220km/h. Adjacent to the track is a massive 164,687 square-foot paddock built for slalom manoeuvres, moose tests, and demonstrations of automated parking technology.

For those seeking something more unconventional, BYD has created a low-friction zone made from 30,000 smooth basalt bricks, kept constantly wet to replicate the challenges of driving on snow and ice. The automaker has even constructed a 70-metre-long pool. This unusual addition exists not for leisure but to showcase the YangWang U8’s ability to float and move slowly across water thanks to its advanced electric powertrain, a capability unheard of in the industry.

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Volkswagen Marks 1.5 Million ID. Deliveries with Milestone ID.7 Tourer

Volkswagen has celebrated a major milestone in its shift towards electromobility, handing over the 1.5 millionth all-electric ID. family vehicle to a customer at its Emden plant in Lower Saxony. The symbolic unit, a black ID.7 Tourer Pro, underscores Volkswagen’s growing presence in the electric segment with a range of up to 606 kilometres.

The ceremony was attended by Lower Saxony’s Minister President Olaf Lies, together with Volkswagen executives including Martin Sander, Board Member for Sales, Marketing and After Sales, and Kai Grünitz, who oversees Technical Development. The customer, from Vechta in Lower Saxony, received the keys to what is now a landmark car in the brand’s electric portfolio.

Volkswagen highlighted that reaching 1.5 million deliveries in less than five years illustrates its position as a leader in Europe’s EV market. Since the debut of the ID.3 in September 2020, the company has consistently topped registration charts in Germany and across the continent. Sander pointed out that the figures confirm Volkswagen’s strategy of building electric cars that match customer expectations, noting that the ID. family remains a cornerstone of the brand’s transformation.

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Geely’s Livan Auto Introduces the Smurf Micro EV

Geely’s sub-brand Livan Auto has pulled the covers off its latest creation, the Livan Smurf, a compact all-electric city car designed to capture urban buyers with its small footprint and charming styling.

The Smurf is essentially a rebadged version of the Geely Panda Mini EV, which has already proven its popularity in China with over 101,000 units sold between January and July this year. With its playful design and affordable pricing, Livan is positioning the Smurf as an accessible entry point into the growing micro-EV segment.

From the outside, the Smurf carries a boxy silhouette that suits its urban role. The closed-off front grille is narrow and is paired with distinctive “Forest Spirit Eye” headlights that lend the car an expressive, cartoon-like face. A silver bumper accent creates what looks like a smiling mouth, and the centrally mounted charging port is neatly integrated into the front. At the side, the profile remains flat, with the option of single-tone or dual-tone finishes, while 14-inch “Vibrant Pinwheel” alloy wheels complete the look.

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XPeng and Volkswagen Strengthen Partnership with Broader Technical Cooperation

XPeng and Volkswagen Group have taken another major step in their partnership with the signing of a new agreement that expands their technical cooperation well beyond electric vehicles.

The deal will see the jointly developed electrical and electronic (E/E) architecture not only integrated into Volkswagen’s battery-electric vehicle (BEV) platforms but also applied to its internal combustion engine (ICE) and plug-in hybrid (PHEV) models for the Chinese market. This expansion marks a significant milestone in Volkswagen’s push to accelerate its software-defined car strategy while also improving its overall competitiveness in the world’s largest automotive market.

According to the two companies, the E/E architecture has already been designed and validated by their joint R&D team. Originally intended for use in electric models, it has now been adapted for conventional and hybrid powertrains as well. This flexibility will allow Volkswagen to benefit from faster software iteration, frequent over-the-air updates, and a dramatic reduction in vehicle development cycles.

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Lexus Sport Concept: A Glimpse Into the Future of Performance

Lexus used the stage at Monterey Car Week to showcase what could become its most important performance model in years. Unveiled at The Quail, A Motorsports Gathering, the new Lexus Sport Concept is not just another design study but a strong indication of where the brand is heading with its future supercar ambitions.

The striking silhouette is clearly influenced by past icons such as the LFA and LC 500, blending the drama of an exotic with sharp modern detailing. Its low and wide proportions convey speed and athleticism, while intricate aerodynamic elements reveal Lexus’ intent to produce a machine that is as functional as it is beautiful.

Among the details are exhaust outlets neatly positioned beneath the rear wing, vents at the rear reminiscent of the LFA, and additional cooling channels behind the side windows. Even the centre brake light has been reinterpreted, incorporating four miniature fans set high on the rear deck, an unusual yet purposeful touch that underscores its engineering focus.

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Chery Becomes First Chinese Carmaker to Break 5 Million Exports, OMODA | JAECOO Leads the Charge

Chery International Group has set a new benchmark in the global automotive industry by becoming the first Chinese car manufacturer to export over five million vehicles. This achievement cements the company’s position as China’s top passenger car exporter for an unprecedented 22 consecutive years.

July 2025 proved to be a defining month for the brand. Chery secured a “Double 500” milestone, recording the fastest climb among automakers on both the Fortune Global 500 and Fortune China 500 lists for the second year running. Globally, the Group leapt from 385th in 2024 to 233rd place, while its domestic ranking surged from 100th to 59th.

Much of this momentum can be traced to the rapid ascent of OMODA | JAECOO, which has carved out a reputation for attainable luxury, refined design, and innovation that challenges established segments. Since its inception, the brand’s appeal has extended across 44 markets, including ASEAN, Europe, Australia, and South America.

In just over two years, OMODA | JAECOO has accounted for 37% of Chery International’s total exports, with cumulative global sales surpassing 570,000 units. This pace has set a new industry record as the fastest-growing automotive brand to surpass the half-million sales milestone.

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Lamborghini Fenomeno Debuts as a 1,065hp, Ultra-Exclusive V12 Hybrid

Lamborghini has unveiled its latest “few-off” masterpiece, the Fenomeno, an ultra-rare creation that pushes the brand’s obsession with drama and performance to new heights. Developed from the V12-powered Revuelto, it carries over the hybrid powertrain yet wears a completely reimagined body that ensures it stands apart even in the company of Sant’Agata’s most outrageous models.

Visually, the Fenomeno embodies everything expected from the Raging Bull: wild proportions, razor-edged lines and an aggressive stance that suggests it was designed with no consideration for subtlety. While it falls just short of the sheer extremity of the Veneno, its unique surfacing and detailing make it instantly recognisable as a Lamborghini while sharing very little visually with the Revuelto.

At the front, angular headlamps flank a vented bonnet housing two large air extraction outlets. A bespoke bumper, complete with a colour-matched stripe running along the splitter, adds an extra layer of theatricality. The profile is equally purposeful, with every panel reworked and a pair of substantial air intakes positioned behind the doors. The car sits extremely low, with its wheels neatly filling the arches, giving the impression of a race car adapted for the road.

The rear treatment is dominated by carbon fibre, from the bespoke engine cover to the reshaped rear fascia. Distinctive Y-shaped LED tail-lamps frame a set of quad, centrally-mounted exhaust outlets that leave no doubt about the car’s performance intent.

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BMW Bids Farewell to the 8 Series with Limited Edition M Heritage Model

BMW is preparing to give the current 8 Series a send-off worthy of its grand touring legacy. With production of the model expected to conclude next year, the brand has unveiled the Edition M Heritage, a 500-unit special designed as a tribute to the original E31-generation 8 Series of the 1990s.

Built on the M850i xDrive Gran Coupé platform, the Edition M Heritage revives some of the most iconic paint finishes from the first-generation 8 Series. Customers can choose from Bright Red, Mauritius Blue, Cosmos Black, Oxford Green or Daytona Violet, all of which were available on the E31 between 1990 and 1999.

Every example comes with a carbon-fibre roof marked by the M division’s signature tri-colour stripes, complemented by unique 20-inch alloy wheels. The M Sport Professional package, normally an optional extra, is fitted as standard and includes uprated brakes, black callipers and additional black exterior detailing.

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Mugen Adds Sporty Edge to Honda N-One e: Ahead of European Debut

Honda’s N-One e:, a fully electric kei car destined for both Japan and Europe, is already known for its distinctive and slightly cheeky styling. Now, Japanese tuning house Mugen has introduced a body kit and accessories designed to inject even more personality into the compact EV.

The exterior enhancements comprise a matte black front splitter, side skirts, and a compact rear diffuser, complemented by a matching rear spoiler. New 15-inch alloy wheels complete the transformation, giving the N-One e: the stance of a miniature hot hatch.

Mugen’s visual upgrades also extend to custom decals bearing its branding, which can be applied to the front bumper, grille, side panels, and rear bumper. A tuning badge positioned on the front fenders ensures its modified credentials are clear.

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