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Silicon Valley And Detroit Are Battling Over The Future Of The Internet-Connected Car

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connected car 1

Perhaps the greatest potential for popular smartphone or tablet software and services is not in household appliances like TVs and refrigerators, or in wearable devices like wrist watches, but in cars. 

To state the obvious: Cars are inherently mobile. Additionally, many of the activities people do in their cars — listen to music, look up directions — mesh nicely with popular app-mediated activities on mobile gadgets. Americans spend an average of 1.2 hours a day traveling between locations and American commuters spend an average of 38 hours a year stuck in traffic. If mobile apps and Internet-based services can shoehorn their way into the in-car environment, that means a great opportunity to expand their ability to engage consumers, absorb their attention, and gather data.

In a new report from BI Intelligence, we examine how Silicon Valley and Detroit are waging a war over consumer technology in the car. We explore the technical underpinnings and leading initiatives for bringing mobile into the car, analyze the three main ways to bring mobile products and services into cars, explore whether app usage in the car will be centered on the phone or in computing systems and connectivity embedded into the car, look at whether car companies will bring the war between Android and iOS into the car or if they will build their own Web-ready platforms, and detail what apps and services might stand to gain the most from in-car usage.

Access the Full Report By Signing Up For A Free Trial Today >>>

Here's a brief overview of the prospects for the mobile car:

In full, the special report:

Join the conversation about this story »


BMW's New Electric i3 Is No Tesla — But It May Be The Perfect City Car

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2014 bmw i3

You may have read stories lately that suggest the BMW i3 is the first luxury competition for the Tesla Model S electric car.

It’s not.

You may also have read that it’s the first range-extended car to go head to head with the Chevrolet Volt.

It’s not.

In building its first battery-electric vehicle, BMW has done precisely what it has been saying for three years it would do: build what may be the world’s best electric city car.

The question is simply whether that’s relevant to a country where no head of household in recorded history has ever said, “Honey, let’s go buy a city car.”

Calming chaotic city driving

In two days of test-driving in and around Amsterdam, the i3 provided a driving experience that was both unexpected and quietly wonderful: It made chaotic stop-and-go traffic tolerable.

The design, sound insulation, and materials of the cabin simply calm occupants, an effect we’ve never experienced in a car before. And the quiet, effortless power and small dimensions make it easy to use even in crowded precincts.

MORE: 2014 BMW i3 Review

The roads of Amsterdam are occupied by pedestrians, bicycles, mopeds, motorcycles, private cars, commercial trucks, buses, and trams—often just inches from each other.

In that environment, the i3 showed its ability to accelerate rapidly, decelerate strongly enough to offer one-pedal driving in all but emergencies, and soothe the anxieties and irritations of driving in the chaotic traffic conditions of a crowded modern city.

But a soothing Scandinavian modern interior, in a car that’s probably at its best from 0 to 45 mph, will likely come as a very big shock to BMW’s loyal followers in the U.S.

For 30 years, they have thrilled to the idea of owning an “Ultimate Driving Machine”—and BMW has mostly delivered on that promise.

So the 2014 BMW i3 poses a ferocious challenge for BMW’s marketers in the States. We’re going to be very curious to see how the company positions, markets, and sells it smallest and most technologically advanced vehicle.

Constant stares

Our test drives, totaling more than 100 miles over two days, were in two German-market BMW i3 cars, one striking bronze, one a more predictable silver.

They drew stares wherever we drove, likely for the unusual upright shape and a design language for all BMW “I” vehicles that mandates a glossy black hood, roof, and tailgate—regardless of the color of the body sides.

The i3 is wide for its length, and two front-seat occupants have noticeable space between them. The wheels are pushed out to the corners, meaning the longest possible wheelbase for the length.

And indeed, BMW’s electric car “drives small”—you can place it fairly easily and, once you learn how wide it is, park it with ease.

Superb one-pedal driving

It’s the driving experience—specifically the aggressive regenerative braking—that sets the BMW i3 apart from any other electric car. We haven’t driven a car that makes one-pedal driving this easy since the original Tesla Roadster.

The company clearly spent a great deal of time refining the motor control software and pedal feedback over earlier versions used in the BMW ActiveE test fleet. (We’ll pass swiftly over the distressing driving characteristics of the earlier MINI E test fleet.)

The i3 has by far the best, and best modulated, regenerative braking we’ve driven. The 125-kilowatt (170-horsepower) motor delivers up to 50 kW of regeneration to recharge the 22-kilowatt-hour lithium-ion battery pack in the floorpan. (BMW says 18.8 kWh of the pack capacity is available to propel the car.)

That turned out to be enough to slow the car to a standstill, even on a steep downhill parking ramp—to the surprise of the driver.

Unlike the old Roadster, the BMW i3 regeneration can slow the car right down to a stop. Once a driver gets used to the characteristics of the accelerator pedal—and learns to look for the gliding mode on the power-delivery meter—it’s rarely necessary to touch the brake pedal at all.

This stands in sharp contrast to electric cars like the Chevrolet Volt, the Nissan Leaf, and even the Tesla Model S. Those cars all, to various degrees, mimic the behavior of a conventional car with an automatic transmission.

The i3 has no idle creep, and after a day of driving with one pedal, you’ll wonder why any other plug-in car would bother with it.

Providing such aggressive regen means the braking system is entirely conventional; it need not blend regenerative and friction stopping, as other cars—including hybrids—do. It’s really just for sudden maneuvers and panic stops.

We did, however, notice a distinct creaking as the car came to a stop using the brake pedal. BMW chassis engineers said it was a known issue having to do with a slight slippage of the brake pads on the discs at the point just before the car stopped entirely, and that they were working on a fix.

Range around 80 miles?

The EPA has not yet released its range and efficiency ratings for the U.S. version of the 2014 BMW i3. Our two test cars started with indicated ranges of 82 and 88 miles, and their end-of-day ranges and distance covered largely confirmed the accuracy of the estimates.

BMW says it’s completed the EPA test cycles and that official range and efficiency ratings will be released “soon.” If we had to lay money, we’d bet on 75 to 85 miles—BMW blithely quotes “80 to 100 miles” based on less aggressive European test cycles.

We should note that our two days of driving were on almost entirely flat terrain (that’s Holland), and that while we had a few segments of highway speeds, most of the driving was from 20 to 50 mph. Driving the car largely at highway speeds will obviously reduce range.

On the European test cycle, BMW says the i3 covered more than 4 miles for every kilowatt-hour of usable energy in the battery. That would put range around 80 miles, perhaps more.

And range of around that level—comparable to the 2013 Nissan Leaf’s 75 miles, or the 62 to 105 miles for a variety of much lower-volume battery electric cars—means that the 2014 BMW i3 simply isn’t a Tesla Model S competitor.

Not to mention its bread-van shape, its heavy focus on multi-modal urban transport, and its relative lack of cargo capacity.

Range extender: the big unknown

All of the BMW i3 test cars in Amsterdam were the battery-electric version. This is the version the company expects to predominate in European sales.

BMW executives acknowledged that North American buyers will likely want the added security of the 25-kW (34-hp) range extending two-cylinder engine and generator—which adds $3,850 to the price—although they stress that it will increase weight, reduce electric range, and probably not be used as much as owners imagine.

The company even suggested that it may try to discourage buyers from choosing the range-extended model, perhaps by letting them take home a battery-electric version for a week.

If buyers truly found that the car didn't have enough range for their week’s worth of travels (assuming overnight plugging in), BMW would then let them upgrade to the range-extended version. We’ll see how (or whether) that idea plays out in real-world sales.

But because the company has said that the range extender is not for daily use, but for emergencies and unusual situations, it remains unclear whether the i3’s performance in range-extending mode will be compromised.

Asked directly about the case of a 12-mile uphill grade of 5 percent at highway speeds with four people in the car, the powertrain executive for the car said that passengers wouldn’t notice any difference in performance.

Until we drive a BMW i3 in range-extending mode, we can’t assess whether the car’s a viable Chevy Volt competitor. Both cars have four seating positions, with somewhat tight rear seats. The BMW comes in almost $10,000 more expensive, but then it has a German luxury brand rather than an all-American bowtie on the grille.

Styling mish-mosh

The 2014 i3’s most successful aspects are the front and front three-quarter views. The only clues to its carbon-fiber reinforced plastic (CFRP) body shell and separate aluminum chassis carrying all the running gear come when you open the door and see a few exposed, unpainted plastic surfaces.

From the front, the electric car leads with a slightly more geometrical version of the classic BMW twin-kidney grille. It’s more of a polygon than the rounded-corner grilles on gasoline and diesel models.

The two blanking plates that sit where air would normally pass into the “engine compartment” are outlined in a medium blue tone—signaling the car’s unusual battery-electric powertrain.

The base of the windshield is quite far forward, giving the front an appealing snub-nosed appearance. But move around to the side, and strange things start to happen.

There’s a very practical dip in the window line for the second door, but then the belt line rises again to a level above that of the front doors—giving the car three different horizontal lines on the side, plus a window line that dips down from the roof to make the rear window shallower than it could be.

BMW calls this “stream flow” design—we’ll see it on other BMW “I” cars, including the upcoming i8 plug-in hybrid sport coupe—but it goes far beyond the window lines of the Hyundai Genesis Coupe and the Honda Odyssey Minivan, the only other cars to have a rear window lower than the front.

Then, at the rear, it all falls apart. The tailgate is a shiny black glass hatch that contains the rear lights in it, but sits slightly ahead of the body sides that flank it, which protrude in a way that looks like vestigial fins. Then there’s the rear bumper shield, which rises high up to the base of the load floor—which is higher than you’d expect because it has the electric drive motor underneath it.

Scandinavian modern loft

Inside, to our eyes, the BMW i3 is both distinctive and modern.

The designers worked hard to convey a sense of space, and they succeeded, even if some of that interior volume sits beyond the dashboard or in places that it’s not all that useful to passengers.

The design chief for the i3 said that starting with a clean sheet of paper and building a car like no BMW that came before let them consider what would be the most appropriate interior for a city car. And he cited the open feeling and minimalist furnishings of a loft apartment as an inspiration.

The result is a cabin that feels spacious, gracious, and simple.

That was a challenge for the company: “We are not good at subtracting things from the cars that we make,” admitted one designer in conversation.

Free-floating displays

Both displays on the dashboard—a 10-inch central screen and a smaller one visible to driver through the steering wheel—float above the dashboard surface on stalks.

That keeps the dash top low; it also extends a long way forward to the base of the windshield, amplifying the openness.

The woven seat fabric somehow conveys luxury even in its simplicity, and open-pore eucalyptus wood on the flip-up glovebox door erases any hint of glossy wood finishes.

Contrasting stitching on leather surfaces, which are tanned using non-toxic olive dyes, and a variety of textures and materials come together in a way that really does make the cabin a calming and soothing place.

Unfinished surface?

To our eyes, the one dissonant note is the kenaf renewable-fiber material used for both the farther reaches of the dash top and the forward portions of the door interiors.

Frankly, it looks as though it’s the backing material that sits behind a covering—that the factory somehow inexplicably omitted.

Even after a day of watching out for cyclists, traversing hundreds of traffic-calming speed bumps, and shooting down narrow one-way canal-side one-lane streets, the BMW i3 was easy, predictable, and relaxing to drive.

It’s hard to imagine the extra effort that would have been required to cover the same route in, say, the typical European diesel subcompact hatchback—especially one now fitted with a start-stop system.

Push to go

Like any battery car, the BMW i3 utterly dispenses with engines turning on and off, transmissions shifting, and all the other drama we’ve accepted in cars with combustion engines.

It’s simplicity itself: With the proximity fob in your pocket or in a cupholder, push the start button that’s on the rotary drive knob behind the steering wheel, release the parking brake, rotate the knob to “D”—and drive.

Push the accelerator to go, let up slightly to slow down or stop.

That’s really all there is to it.

Achilles’ Heel: handling

If the 2014 BMW i3 has an Achilles’ Heel, it’s the handling and roadholding at higher speeds. It’s fine around town, and adequate in large-scale suburban sprawl, but tight turns and switchbacks are not its happiest ground.

The tall, narrow tires (to reduce aerodynamic drag at high speeds) have a contact patch that’s much longer than it is wide—the reverse of most modern tires. In corners, it’s surprisingly easy to make them squeal in even halfway aggressive driving.

The car does actually hang on, but the high seating position exacerbates the feeling of body roll. BMW quotes a cornering force of about 0.80 G, but we experienced regular rear-wheel hop and back-end jitters while accelerating out of tight corners or tightening our line on turns.

If you drive smoothly, you may not notice the handling, but this car is simply not a road warrior. And it will never go up against BMW’s M line of performance cars—or even against a well-driven Mazda 3.

But that was never meant to be its mission in life. BMW has built a very good city car, one that does something that no other electric small car does: actually makes the driver willing to tolerate congestion and chaotic urban traffic.

How applicable that is to the majority of Americans who live in suburban sprawl remains to be seen.

If you want an electric car with a range of less than 100 miles, this is a very good one.

If you want a Tesla Model S competitor, however … keep waiting. This isn’t it.

BMW provided airfare, lodging, and meals to enable High Gear Media to bring you this first-person drive report.

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SEE ALSO: Take A Closer Look At The Electric BMW i3

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Everything You Need To Know About The Little 2 Series BMW Unveiled Today

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BMW M235i CoupeAs promised, BMW revealed its new 2-Series in full today and included the all-important pricing details. The car will hit showrooms in early 2014 following a debut at the Detroit Auto Show in January.

The 2-Series will be a late 2014 model year arrival and its pricing will start at $33,025, including a $925 destination charge.

Only two models will be available at launch: a base 228i and sporty M235i. The latter marks the arrival of BMW’s M Performance line of cars here in the U.S. and will set you back at least $44,025, once again including a $925 destination charge.

So what exactly is the 2-Series? Fans are already dubbing the car the spiritual successor to the BMW 2002 of the 1960s and ‘70s, though to the layperson it’s just a replacement for the 1-Series Coupe. Under BMW’s new naming scheme, dynamic models like coupes and convertibles all have even-numbered names while regular models like sedans and wagons get odd-numbered names. Hence, BMW’s replacement for the 3-Series Coupe also spawned a new 4-Series model.

Note, pricing has increased along with the number on the trunk lid. The base 1-Series Coupe started at $31,500 for 2013, its final year on the market, making the base 2-Series $1,525 more expensive. However, the 2-Series is larger all around. Its length has increased 2.8 inches to 174.5 inches, its width is up 1.3 inches to 69.8 inches and its wheelbase is also 1.3 inches longer at 105.9 inches. This translates to more interior space and additional storage. Trunk capacity increases by 0.7 cubic feet to 13.8 cubic feet.

Power in the 228i comes from BMW’s familiar turbocharged 2.0-liter four-cylinder. In its latest application it’s rated at 240 horsepower and 258 pound-feet of torque.

The M235i is powered by turbocharged 3.0-liter straight-six engine, whose output registers at 322 horsepower and 332 pound-feet of torque. The M235i isn’t quite a dedicated M car but it does benefit from several go-fast bits developed by the M engineers. It features adaptive suspension, upgraded brakes, variable steering and Michelin Pilot Super Sports tires.

Even the exhaust has been specifically tuned for the M235i. For a feel of its performance, check out our drive report of the car’s European cousin, the M135i hatch.

BMW M235i Coupe

A six-speed manual is fitted as standard across the range but an eight-speed automatic is available as an option. In the M235i, the auto enables 0-60 mph acceleration in just 4.8 seconds with top speed limited to 155 mph. The 228i will take you 5.4 seconds to achieve the same feat and its top speed is limited to 130 mph, though the latter can be raised to 155 mph when the car is equipped with available Sport Line or M Sport packages.

Fuel saving features include aerodynamic air curtains in the front bumper, an engine stop-start function and ECO PRO mode for the auto. EPA fuel economy ratings for the 228i are estimated at 23 mpg city, 35 highway (22/34 mpg for the manual), while the M235i will be rated 22/32 mpg with the automatic or 19/28 with the manual.

Inside, 2-Series owners will find dual-zone climate control as standard, as well as the iDrive interface with a 6.5-inch display.

You’ll get a wide-screen 8.8-inch display if you opt up to the navigation system with Touch Controller. Other options include Adaptive Headlights, High Beam Assistant, Parking Assistant, a rearview camera system, and BMW Apps functionality.

BMW M235i Coupe

Numerous other functions can also be integrated into the car at a later stage using third-party apps--via a smartphone or the car’s built-in SIM card. These include real time traffic information, web radio functions and use of social networking services such as Facebook and Twitter. One app that is tailor-made for a car like the M235i is the M Laptimer.

As for safety, BMW’s Driving Assistant option comprises the camera-based Lane Departure Warning and Collision Warning systems. There are also front airbags, side airbags integrated into the seat backrests, head airbags for the front and rear seats, as well as knee airbags for the driver and front passenger. Additionally, all 2-Series models are fitted with belt force limiters and belt tensioners in the front, ISOFIX child seat attachments in the rear, and a tire pressure monitor.

For pedestrian safety, the car has been designed with an active hood system: in the event of a collision, the system automatically raises the rear part of the hood. This creates additional deformation capacity, helping reduce the force of impact. In addition, relocating the intake air duct for the engine plus the air filter for the interior allowed the creation of a larger deformation zone in the hood area.

Stay tuned for the 2014 BMW 2-Series’ debut in Detroit in January, and look for a 2-Series Convertible to join the lineup later in 2014.

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Why Did BMW Photograph Its Sexy New Coupe With This Big Rusty Ship?

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BMW unveiled the new 2 Series today, and both models — a base 228 i and a sportier M235i — look excellent. We have all the details here.

But there's something odd in the press materials that accompanied the news. The photos of the M235i don't show it driving in the usual places, like mountains, the desert, or around some futuristic-looking city.

It's at some port, parked next to a big rusty ship.

Rust and decay aren't what come to mind when you think, "new BMW."

We won't try to analyze the odd choice, but theories are welcome:

BMW M235i Coupe

BMW M235i Coupe

BMW M235i Coupe

BMW M235i Coupe

SEE ALSO: Everything You Need To Know About The New 2 Series

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Here Are The Sports Cars That Thieves Love To Steal

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The National Insurance Crime Bureau has released its latest data on the most commonly stolen sporty vehicles, and the states where the most thefts occur.

Not surprisingly, the less expensive — and thus less rare — cars like the Chevy Camaro and Ford Mustang are at the top of the list. Offerings from Porsche, Audi, and BMW are also in the top 10.

The data covers thefts between January 1, 2009 and December 31, 2012, and considers only 2010-2012 model-year cars.

Here are the numbers for the sports cars thieves like most:

stolen sports cars chart

And here are the states where they do their best work:

chart sports car thefts by state

SEE ALSO: I Drove A Camaro Convertible In Horrific Circumstances — And Had A Blast

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People In Argentina Are Living Like Moguls Thanks To The Currency Black Market

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alfa romeos

The currency black market is hot in Latin America. We recently told you that wealthy Venezuelans are procuring U.S. dollars abroad and dumping them on the local black market to arbitrage the artificially low official exchange rate.

Now, Bloomberg has two eye-opening follow-ups detailing this trend in Argentina. 

Camila Russo reports people are flipping dollars for as much as 9.7 pesos on the local black market, compared with the official rate of 5.9, and living like moguls.

On of the more prominent displays of this: locals now enjoy 39% discounts on Porsches and other luxury cars.

As a result, she says, auto sales are heading for a record 930,000 this year, with imported cars accounting for 60% of that figure. At 170% growth, Tata's Land Rovers saw the largest jump in sales, Russo says, with Alfa Romeos, BMWs and Porsches also seeing growth of at least 75%. “They just come and leave with a new car because it’s become a very good deal with the gap in the exchange rates," a local BMW sales exec tells Russo.

Meanwhile, Bloomberg's Eliana Raszewski caught up with a visiting French doctor fresh off visiting a local currency flipper (they're called "Arboletos" because they're a "fixed part of the landscape." ) in Buenos Aires. As he "stuffed pesos in his pocket," he explained how he and his family  were taking a three-week vacation and planned on touring Argentina's Malbec country. "I know the risks, but so far I’ve never had problems, I try to be careful...Changing dollars in the streets is worth it,” he said.

The scheme has blown a hole in Argentina's dollar reserves: Russo says they've plummeted by $10.6 billion in 2013, the steepest decline since 2002 (which was one year after Argentina's infamous default). The current level of $32.7 billion is the lowest in seven years. The country is also tapping dollar reserves to pay off its debt, default protection on which is now the most expensive in the world.

Argentine officials are trying to address the problem, with amusing results: car importers are now forced to export Argentine-made products to help compensate for the dollar declines they're fueling. So now, the local Porsche unit is shipping wine, Mitsubishi is exporting peanuts and Subaru is selling chicken feed to Chile.

Click here (for Russo) and here (for Raszewski) to read the full stories on Bloomberg.

SEE ALSO: Meet Jim O'Neill's "MINTs"

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Silicon Valley And The Auto Industry Are Battling Over How To Bring Apps Into Cars

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connected car 1

Perhaps the greatest potential for popular smartphone or tablet software and services is not in household appliances like TVs or refrigerators, but in cars. 

To state the obvious: Cars are inherently mobile. Many of the things people do in their cars — listen to music, look up directions — mesh nicely with popular app-mediated activities on mobile gadgets. Americans spend an average of 1.2 hours a day traveling between locations and an average of 38 hours a year stuck in traffic. If mobile apps and Internet-based services can shoehorn their way into the in-car environment, that means a great opportunity to absorb consumer attention, and gather data. Not to mention, current dashboard "infotainment systems" are mostly terrible. 

In a recent report from BI Intelligence, we examine how Silicon Valley and Detroit are waging a war over consumer technology in the car. We explore the technical underpinnings and leading initiatives for bringing mobile into the car, analyze the three main ways to bring mobile products and services into cars, explore whether app usage in the car will be centered on the phone or in computing systems and connectivity embedded into the car, look at whether car companies will bring the war between Android and iOS into the car or if they will build their own Web-ready platforms, and detail what apps and services might stand to gain the most from in-car usage.

Access the Full Report By Signing Up For A Free Trial Today >>>

Here's a brief overview of the prospects for the mobile car:

In full, the special report:

Join the conversation about this story »

This BMW 3 Series Is More Efficient Than A Smart Car

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Click for sound:

 

2013 has been a big year for diesel in the United States. Audi and General Motors are both pushing new models that give up on gasoline for the more energy-rich fuel, and BMW has gotten in on the game, too.

The $38,600 BMW 328d (with the M Sport package, our model came out to $45,075) gets an EPA-rate 32 mpg in the city and a whopping 45 mpg on the highway. And it delivers those numbers with all the style, power, and comfort that have made the 3 Series one of the best model lines ever.

To see if BMW has made the perfect road trip car, we took the 328d on a road trip from New York City to Albany, and back. Watch and see how it went down.

Produced by William Wei

SEE ALSO: How It Feels Going From A Chevy Volt To A Tesla Model S

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Audi Will Spend $30 Billion In The Next 5 Years To Catch Up With BMW

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Audi Frankfurt Motor Show

FRANKFURT (Reuters) - Germany's Audi <VOWG_p.DE> said it would invest about 22 billion euros (£18.25 billion) in new models, plants and technology in the five years through 2018.

That equates to 4.4 billion euros a year, compared with 2.6 billion in the carmaker's budget of December 2011.

People familiar with the matter told Reuters earlier this month that Audi planned to increase spending as the luxury carmaker steps up efforts to catch larger competitor BMW <BMWG.DE>.

Audi, a division of Volkswagen, said in a statement on Friday that 70 percent of its planned investment was earmarked for new models and technology, and more than half of the sum would go to its German sites in Ingolstadt and Neckarsulm.

Planned investments will sustain Audi's foreign expansion as the carmaker sets up factories in Mexico and China and eyes production in Brazil. Audi for the first time next year plans to build more cars outside Germany than at home.

It also aims to boost vehicle sales to at least 2 million cars per year and overtake luxury-sales champion BMW by the end of the decade by expanding to 60 models from its current 49.

"We had set a target of 1.5 million deliveries a year by 2015, but we already comfortably reached that target in 2013. Now we are heading for the next milestone of 2 million," Audi Chief Executive Rupert Stadler said in the statement.

Higher spending at Audi follows an announcement by VW last month to shield vehicle-based investment from cuts in other areas, responding to sluggish auto demand. The expansion is part of VW's goal to overtake Toyota <7203.T> and General Motors <GM.N> as the world's No. 1 automaker no later than 2018.

($1 = 0.7303 euros)

(Reporting by Maria Sheahan; editing by Jason Neely)

SEE ALSO: 35 Reasons Elon Musk Is The Most Badass CEO In America

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No, Anne Hathaway Didn't Get BMW's New Electric Car Months Before It Goes On Sale

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les miserables anne hathaway

Sometimes the media don't quite know what they're talking about.

And so it was with a story that had actress Anne Hathaway importing one of the first 2014 BMW i3 electric cars from Germany for her husband because she didn't want to wait for it to go on sale in the U.S. next spring.

The story, which appeared in multiple outlets--including Arizona Central--was credited to Bang Showbiz.

That entity bills itself as "the world's premier entertainment news agency providing the most exciting celebrity news," but oddly does not appear to have the story on its own site — which hasn't been updated in two weeks.

More restrained coverage in the New York Daily News and the UK's Daily Mail, among others, simply indicated that Hathaway had "gone for a ride" in the car driven by her husband, Adam Shulman.

The idea that anyone, even a famous actress, could legally import a German-market car is somewhere between unlikely and idiotic.

The car shown in the photos is a European pre-production version of the BMW i3, one of a number temporarily imported by the maker for the Los Angeles Auto Show held in November.

Those cars are now being distributed across the country for test drives at dealers and elsewhere.

Obviously, some of them are being loaned to celebrities to use under the eyes of the paparazzi, thereby bringing free public relations and marketing for the car in anticipation of its spring launch.

If you look at the photos in the Daily News and Daily Mail links, there's a number on the windshield ("27" in this case) that will be familiar to anyone who attended the LA Show or got a ride in one of those cars.

Moral of the story: Don't believe everything you read--or at least check it with a reputable source.

[hat tip: Brian Henderson]

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2014 bmw i3

SEE ALSO: BMW's New Electric i3 Is No Tesla — But It May Be The Perfect City Car

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10 Cars We Can't Wait To See In The Next 2 Years

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BMW i8 hybrid concept

Cars have become so seemingly identical, so reliable, and so regulated that they're boring.

You might find some who'll argue that. But anyone who simply takes a trip out to a couple of new-car showrooms will find that's actually far from the truth.

Jump ahead to see the future cars we're most excited for >>

Many of today's production cars offer expressive designs that scream out; pack futuristic materials and sophisticated chassis systems; run with complex powertrains; and give you interfaces that we might have only dreamed of just a decade ago.

Keeping in mind the spark of innovation, we've taken a look both at the vehicles that will be arriving for model-year 2015, and at the vehicles that we expect might arrive by the end of calendar-year 2015. And from them, we selected some of the most fascinating models on the way.

And because expensive cars often seem more compelling—or is that glamorous?—we made this even more interesting by keeping exotics off the list, and making sure that most of our picks are anticipated to start below $50k.

In the spirit of looking forward to what's fascinating, we've prepared a list of ten. There are indeed a few boring cars on the market today; but these upcoming models in the pages ahead certainly won't be among them.

Tesla Model X

Is Tesla the most fascinating automaker of the year? Almost certainly yes, whether you judge that by buzz, controversy, or innovation—or by the sheer crowd-gathering potential of the so-called “falcon wing” doors of its upcoming second mass-market, all-electric vehicle, the Model X crossover.

The Model X is due for a production start (and maybe even first deliveries) by the end of 2014, and we're guessing that Tesla and its products will continue to keep the public—and tech geeks and car enthusiasts—enthralled for the foreseeable future.                 



Land Rover Defender

Range Rovers have always been pretty plush, but Land Rover hasn't always been a luxury brand. There's nothing as charming as the iconic Defender, which embodied the tough, down-to-basics side of the brand.

And the Defender's coming back—based on the eye-catching DC100 concept from 2011. While reports from earlier this year pegged it as delayed, possibly until 2016, we're hoping it arrives by the end of next year.                 



Acura NSX

An all-new performance flagship for Honda (as a company) and Acura (as a brand) is just over a year away, and it's been a fascinating trajectory of design teases and technical details that have emerged over the past several years.

We know the upcoming NSX will be powered by an innovative all-wheel-drive hybrid powertrain, including a mid-mounted V-6 engine and dual-clutch gearbox, and that it will incorporate a lot of lightweight advanced materials.

But there's plenty more suspense—in questions like how does it drive. Based on what we've recently seen in the Acura RLX Sport Hybrid SH-AWD, we're expecting performance that chases—and maybe beats—the Nissan GT-R, as well as some exotics.                 



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Audi Thinks Driving A Luxury Car Is Like Losing Your Virginity — And Urges Abstinence

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Audi luxury car abstinence ad

It would seem that an ad based on the idea of abstinence would be the absolute wrong way to target young professionals in 2014, but that's exactly what Audi has done in a new ad bashing competitors BMW and Mercedes-Benz.

The ad is titled "Luxury Car Abstinence" and shows various well-to-do young people speaking to the camera about their struggles to resist the temptation of driving a shiny new Beamer or Benz.

Instead, they profess a desire to wait for a more meaningful human-car relationship, with an Audi. At the end, rock music plays alongside footage of the new Audi A3, and viewers are told "Don't regret your first luxury car. The uncompromised Audi A3."

Highlights include a man with his face blurred out describing how his life was ruined by a tryst with a non-Audi, and another man who quits a new job because the company car it offered him was a Mercedes-Benz. 

The upshot, apparently, is that everyone who drives a BMW is a slut, and anyone willing to accept a free Mercedes-Benz is a tasteless pauper willing to humiliate themselves just to get from point A to point B.

SEE ALSO: Axe, Hyundai, And Audi Reveal Details On Their Returns To The Super Bowl

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BMW's New Technology Makes Self-Driving Cars Look Thrilling

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activeassist

At the 2014 Consumer Electronics Show in Las Vegas this week, BMW showed off a new technology called ActiveAssist which is essentially an autonomous driving assistant capable of handling a car at the limits, such as during high-speed cornering or a sudden lane change or sudden hydroplaning.

The aim of the system is to bring a vehicle back into line in demanding situations without any input from the driver. BMW says ActiveAssist is not designed to take the fun out of driving but rather to improve safety.

To demonstrate the technology’s capability, BMW showed a 2-Series prototype fitted with ActiveAssist racing around a circuit. The prototype piloted its way at high speeds and with exceptional precision on a slalom run between cones.

It also adhered to a marked out circular course regardless of the friction coefficient of the road surface, and executed an obstacle-evading lane change smoothly and without any deviation from the target path. Even when deliberately provoked into oversteer, where the tail-end of the car would normally start to slide, the prototype handled the necessary corrections and followed its path safely and along almost identical lines time after time.

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These corrections are done by existing control and stability methods, such as braking individual wheels and adjusting the speed, in addition to new methods where precise steering inputs are added to the mix. For example, understeer is dialed out by opening the steering, and oversteer is caught using a carefully gauged combination of counter-steering and brake inputs.

The sensors delivering the necessary information are the same as those already fitted on BMW cars, and work in conjunction with existing electronic stability control and electronic power steering systems.

SEE: 2014 Chevy Camaro Z/28 Priced At $75,000, First Example Going Up For Auction

And the results? Well, so far only BMW has driven the prototype and according to it the prototype reacts to fluctuating grip levels with the precision of an expert driver. The car will simply continue along the predetermined target line inputted by the driver, BMW promises.

BMW hasn’t mentioned when ActiveAssist might be available in the showroom but says development is ongoing and, as demonstrated by the prototype, is at a late stage. BMW sees ActiveAssist as an important stepping stone towards the launch of a fully autonomous car, as it demonstrates autonomous technology’s ability to safely master all dynamic situations--even up to a vehicle’s dynamic limit.

Since February of last year, BMW and supply giant Continental have been working together to take the next concrete steps towards the implementation of autonomous cars. This research partnership will run until the end of 2014 and involve the introduction of several test vehicles with close-to-production technology. The next major goal for researchers is to get autonomous cars to be capable of handling irregular situations such as crossing national borders and negotiating road construction.

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SEE ALSO: The V10 Engine In The New Lamborghini Huracán Sounds Glorious

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Here's How Far You Need To Drive To Make Diesel Cost-Effective In America

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2014 bmw 328d diesel

One of the big stories in the auto industry this year has been the growth of diesel sales in the United States. No longer dirty and smelly, diesels are a great way for automakers to meet federal corporate average fuel economy (CAFE) standards.

That's because cars powered by diesel are significantly more efficient than those with gasoline in the tank, especially on the highway.

But diesel fuel is more expensive than gasoline (thanks to dumb fiscal policy dating back to the '80s), and the cars themselves are usually more expensive by a few thousand dollars.

So how many miles does it take in a new diesel to see the savings at the pump make up for those extra costs?

A lot, it turns out.

Using EPA-rated combined fuel economy numbers, base prices, and the national average price for regular gas, premium gas, and diesel (from AAA, for January 9), we compared nine pairs of diesel and gasoline cars. Apart from the engine, there aren't significant differences between the cars in each pair.

Here's the chart. You can see the base price difference for each, how much money using diesel saves per mile, and how many miles driven make up for the extra cost.

We've noted cars that use premium gasoline in red, and the most cost-effective diesel model in green. Cars are model year 2014 unless otherwise noted. Click to enlarge:

diesel vs gasoline car costs

It's not surprising that the break even mileage number is the lowest for the luxury cars — premium gasoline is closer to the price of diesel. And the markup for a diesel engine has less impact when the gasoline version is worth over $30,000.

Based on our math, the Chevy Cruze Diesel and VW Jetta TDI will never break even, because their fuel economy numbers aren't good enough compared to the gas version to make driving on diesel more efficient.

The best option is BMW's 328d, a car we recently reviewed and liked a lot.

So if you're looking to save money with a compact car, diesel isn't the way to go. If you want to spend less time at the pump and feel the savings before you put 100,000 miles on the odometer, BMW has some cars that should interest you.

Thanks to reader Andrew Maddox for suggesting this idea.

SEE ALSO: This BMW 3 Series Is More Efficient Than A Smart Car

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The Battle For The Connected Car: Google And Apple Want To Dominate Our Dashboards

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wazeCars have become the new battleground for consumer Internet companies. At the Consumer Electronics Show in Las Vegas this week, Google unveiled a new plan that will allow car manufacturers to use a version of its open source Android smartphone operating system. Android will power car's dashboard-based information and entertainment systems – no doubt with the help of apps like Waze, which Google purchased in mid-2013.

Audi, one member of Google's alliance, has introduced a tablet for use within its cars that will also run on this new car OS. Apple launched a similar initiative last year, "iOS In The Car." 

In a recent report from BI Intelligence, we examine how Silicon Valley and Detroit are in a race to bring Internet technology and services to the car. We explore the technical underpinnings and foundational initiatives, analyze the three main ways to bring mobile products and services into cars, explore whether app usage in the car will be centered on the phone or in embedded computing systems and connectivity, look at how the war between Android and iOS will play out, and detail what apps and services might stand to gain the most from in-car usage.

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Here's a brief overview of the prospects for the mobile car:

In full, the special report:

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The Next BMW 2 Series Is Going To Be Even More Fun Than The Current Model

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2014 bmw 2 series_100452723_l

The BMW 2-Seriesis just falling into the hands of journalists from around the world (stay tuned for our first drive review shortly), but already, BMW is looking ahead to other possibilities for the car--including an M2.

Talking with BMW personnel at the global launch of the new M235i in Las Vegas, we managed to score some very positive nods, smiles, and winks as to the nature of the possible--but very likely--M2. So what did we learn?

The M Division has already graced the new 2-Series with more than a light touch, as the M235i indicates. But there could be a more hardcore version aimed directly at enthusiasts on the way, and it will likely be lighter, more powerful, and more finely tuned.

Lightness is probably the biggest benefit that could come to the new 2-Series, as it's considerably heavier than its small dimensions might suggest: in U.S. trim, the M235i tips the scales at 3,535 pounds. Shaving 200-300 pounds from that curb weight could do a lot to wake up not just cornering and braking, but acceleration too.

Add power to a lighter car and you have even more impressive performance. The M235i's 320 horsepower/330 pound-feet ratings are stout, and feel well-suited to the car, but the S55 in the new M3 and M4 is good for 425 horsepower and 406 pound-feet of torque--figures that would put the M2 much closer to the pointy end of the spectrum. We don't expect the M2 to get the full force of its slightly larger brethren, however, but a detuned S55 could yield figures at or just under 400 horsepower.

For a rough idea of what an M2 might look like on the outside, BMW's incredibly affordable (60,000 euros) fully-prepped M235i Racing, also displayed at the 2014 M235i launch, could show us the general outlines--flared fenders, wider wheels and tires yield a much punchier overall look. Add to that the wider wheels and tires the wider fenders would allow, and an M-tuned suspension plus M electronics, and you've got the potential for one very fun car indeed.

The M2, if it arrives, won't likely come before the 2016 model year, indicating an auto show debut sometime in late 2015 or early 2016. If you're wondering whether you should save your pennies for that car, or pony up on the new M235i now, be sure to stick around for our 2014 BMW M235i first drive report later today.2014 bmw m235i racing_100448169_l

SEE ALSO: Driving Is Actually Less Energy Efficient Than Flying

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BMW: Here's Why Our New Electric Car Is Better Than Tesla's

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bmw ludwig willisch paula patton la auto show 2011 i3

In an August earnings conference call, Tesla Motors CEO Elon Musk was asked about for his thoughts on BMW's new all-electric car, the i3. Musk broke out laughing.

He eventually pulled it together enough to say, "I'm glad to see that BMW is bringing an electric car to market. That's cool. There's room to improve on the i3 and I hope that they do."

Well, BMW has an answer, and it's better argued than Musk's point.

In an interview at the 2014 Detroit Auto Show, President and CEO of BMW North America Ludwig Willisch explained to Business Insider why the i3 is "the ultimate driving machine among the EVs."

The Production Process

When we asked Willisch how the i3 compares to the Model S, he started off by explaining how BMW makes its little electric ride. "You need to look at the whole concept," he said.

"We start off by producing carbon fiber in Moses Lake, Washington, with hydropower. Then we use fully recyclable materials to build the car. We build the car with wind power. So the whole production cycle is fully sustainable."

Meanwhile, he said, "others build electric cars the conventional way," he said, adding, "you need to look at the carbon footprint of the whole thing. I would dare say that nobody's at this point in time where we are, as far as the whole production process is concerned." (We got Willisch to mention Tesla by name only once.)

Tesla has never talked much about cutting emissions in the production process. In a 2010 blog post, VP of Manufacturing Gilbert Passin explained that Tesla uses powder paint instead of traditional liquid paints, to "substantially reduce factory emissions" without compromising on quality. We reached out to Tesla spokespeople for comment, but got no reply.

Drive Quality

The i3 will hold its own on the road, too, with a price tag well below that of the Model S. Willisch said. With a body made of carbon fiber reinforced plastic, the i3 weighs in under 3,000 pounds. The Model S tips the scale at just over 4,600 — that's a lot for a sedan.

Less weight means you get more out of each kilowatt. "What you feel is a normal feel of a car, yet you have the instant acceleration that an electric motor will give you," including the instant torque, Willisch said. "That's really great fun."

Here, Tesla can defend itself. The Model S is an absolute blast to drive, and you don't notice the extra weight when you hit the accelerator. It deservedly won Motor Trend's Car of the Year award in 2012, and Consumer Reports gave it its best score ever.

We haven't driven the i3, but the reviews have been positive. Car and Driver wrote, "Other than a shifter that seems designed to enrage, though, it’s hard to find fault with the i3 ... Capable and thoughtful, the i3 only strays from BMW’s core values in its daring design."

Price

Then there's the question of cost. The i3 starts at $35,325. after a $7,500 federal tax credit. The cheapest Model S comes in at $63,570. The Tesla can go farther on a full battery than the BMW (208 miles vs. 80-100 miles). But BMW is marketing the i3 more as a city car, so that range will do just fine. Plus, you can take the $30,000 you save and buy a 3 Series for those road trips.

We'll withhold final judgement until we drive the i3, but give credit to Willisch/BMW for presenting a real argument, instead of just chuckling.

SEE ALSO: The 18 Coolest Cars At The Detroit Auto Show

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CADILLAC: The Dominance Of German Luxury Auto Brands Is Key To Our Success

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Cadillac Elmiraj concept

The dominance of German brands in the luxury car market is not an obstacle to the growth of Cadillac, that brand's newly installed chief marketing officer says.

It's an opportunity.  

Uwe Ellinghaus spent 14 years at BMW, serving as chief marketing officer from 2010 to 2012. Now he's in the U.S., ready to go head to head with his old employer, and feeling confident.

In 2013, BMW took the luxury sales crown by delivering 1.66 million cars, its all-time high. Cadillac delivered 250,830 — a huge 28% jump over 2012.

And while GM has more big growth in mind for the brand, its smaller scope is a key advantage, Ellinghaus argued.

Cadillac's current lineup "really can match with the best in the world," he told Business Insider. Now it's a matter of getting the word out, to "add the icing on the cake by focusing on the distinctive design that sets Cadillac apart from the German premium crowd."

BMW, Mercedes-Benz, and Audi "have volume aspirations that do not allow them to be bold" in terms of design, he said. "They must go mainstream, otherwise the business case does not work. You can't afford to be distinctive."

Ellinghaus did not knock the work of the Germans — they're on top for a reason — but sees an opportunity provided by their dominance. 

Cadillac can be the fresh face, the new offering. That's where its excellent design comes in. Nearly every car in the current lineup is two years old or younger. They look great and distinctive — and they really are easy to pick out on the road. 

"The more successful they are, the more ubiquitous [German luxury] cars become, the better for us," Ellinghaus said. "They will create a niche for Cadillac by people saying, 'I do not want to drive these cars that everybody has.'"

SEE ALSO: BMW: Here's Why Our New Electric Car Is Better Than Tesla's

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Driving Enthusiasts Will Love BMW’s Plan For Autonomous Cars

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bmw activeassist self-driving car ces 2014

If Mercedes-Benz and Nissan are right, 2020 will be a watershed year for self-driving cars.

Both automakers have promised to bring computer-controlled cars to market this decade.

In an interview at the 2014 Detroit Auto Show, we asked Ludwig Willisch, CEO of BMW North America, if the 2020 mark seemed premature.

He declined to speculate about others' efforts, but said, "I don't see that happening for BMW."

Willisch did little cheerleading for cars that drive themselves: "We would not say that going from A to B automatically should be done by the car. It should be done by the driver. Otherwise the whole notion of being the 'ultimate driving machine' would go away."

It might be good for lesser brands, he added: "Maybe if you have some car, some brand that's not at all exciting to drive, it probably is okay if you're driven by the car. Because you're not losing anything."

The point is, if you buy a BMW, you'll want to drive it, not let some computer have all the fun. An exception would be driving in heavy traffic, when driving is boring and you might as well read the newspaper.

But that stance doesn't seem to match up with the show BMW put on at the Consumer Electronics Show (CES) earlier this month in Las Vegas. It presented a prototype M325i which didn't just drive itself around a track — it drifted. That's the coolest thing a self-driving car has done since Google's version took a blind guy to Taco Bell.

To find out where BMW really stands on this, we turned to Dave Buchko in product and technology communications. He explained there is in fact a happy middle ground.

"BMW does not make cars for people who don't like to drive," Buchko told us in an email. But it recognizes that boring or aggravating driving circumstances (long highway distances, heavy traffic) create a risk for a risky "lapse in attention."

The CES demonstration, "while fun, was not meant to suggest that the company’s aim is to build the self-drifting car but to demonstrate that in order for highly automated driving assistant systems to be viable," they have to be able to take over in intense conditions. Thus, the awesome shot of the car sliding sideways around a corner, fully in control.

 "We still think that whatever electronics you have in the car," Willisch said, "it should support the driver, not dominate the driver."

So you drive when you want to. The car can take over when things get boring or dangerous. For those who love being behind the wheel, but hate traffic and prefer not to crash when things get out of control, that's great news.

SEE ALSO: GM — Not Google — Is Our Best Hope For A Self-Driving Car In The Near Future

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BMW Is Putting A Diesel Engine In Its Flagship 7-Series Sedan

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2014 bmw 7 series

For the 2014 model year, BMW’s flagship sedan is getting a second option for buyers looking to curb their fuel use. BMW has announced that a new diesel model, the 740Ld xDrive, will join the rest of the 7-Series range this spring, offering an alternative to the existing ActiveHybrid 7L model.

The 740Ld xDrive’s engine is the same turbocharged 3.0-liter straight-six found in the 535d, and its output in the BMW flagship sedan is unchanged at 255 horsepower and 413 pound-feet of torque. Paired with an eight-speed automatic and all-wheel drive, the diesel mill will accelerate the big sedan from 0-60 mph in just 6.1 seconds.

2014 bmw 7 seriesEPA-rated fuel economy estimates are not yet available, however, other models equipped with this engine have seen a 25-30 percent improvement in fuel efficiency over their direct gasoline-powered counterparts, according to BMW.

The gas-powered 740Li xDrive averages 22 mpg combined, which means we could see the 740Ld xDrive’s combined mileage average around 28 mpg. The ActiveHybrid 7L gets a 25 mpg combined rating from the EPA.

The 2014 BMW 740Ld xDrive will make its local debut at next month’s 2014 Chicago Auto Show. The first showroom examples will appear in the spring, with pricing set at $83,425, including a $925 shipping charge.

With Mercedes’ S-Class no longer offering a diesel, though that will likely change eventually, the 740Ld xDrive’s only real rival is the Audi A8 L TDI. That model features 240 horsepower and 406 pound-feet of torque and is priced at an almost equal $83,395.

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SEE ALSO: The Huge Airbus A380 Can Finally Fly To Indian Airports

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