Talks with Japan’s Nissan to jointly develop truck said to be at an advanced stage

With a tug, Volker Mornhinweg pulled a covering off a life-size clay model of the pickup truck that Daimler AG’s Mercedes-Benz intends to enter the global market for midsize haulers.

Before him stands a sporty double-cab vehicle with the tapered lines typical of Mercedes-Benz sedans and sport-utility vehicles. But this vehicle has a loading space big enough for any craftsmen’s tools or gear for an outdoorsy family’s weekend outing.

“Years ago, SUVs used to be, well, rough,” Mr. Mornhinweg, head of Mercedes-Benz Vans, said in an interview. “Then they became prettier. Now, we see the same trend in pickup trucks. We see opportunities to enter this market as the first premium brand.”

Mercedes plans to build the truck in cooperation with Nissan Motors Co., using the basic framework of Nissan’s Navara and using Nissan factories to produce the vehicle, two people familiar with the situation said.

The talks, which are at an advanced stage, involve using the basic architecture of Nissan’s Navara pickup truck for the new vehicle that Mercedes is planning and producing the new truck in Nissan factories, two people who requested anonymity told The Wall Street Journal. Nissan was not immediately available for comment.

“The details are still being worked out,” one of the people said.

Mercedes would use the Navara framework, but would provide “everything with which the customer comes in contact,” the person added. That would include the powertrains, the interior, the design and other elements.

Mercdes declined to disclose any details of production plans, a specific launch date or pricing, but said it is making preparations to produce the vehicle “in large numbers” in various regions of the world within the next five years.

The truck will carry a payload of about one metric ton and come with four- or six-cylinder engines. Mercedes is targeting Latin America, South Africa, Australia, and Europe for its debut. It says there are no plans for a U.S. launch.

Global sales of such midsize trucks were 2.34 million vehicles last year, according to IHSAutomotive, a research group. The market is growing, but it isn’t booming. Sales are expected to rise to 2.83 million by 2020, says IHS.

Mercedes is counting less on growth in the market, than on demand for trucks with greater luxury and comfort from existing buyers.

“We call it rough luxury,” said Kai Sieber, director of design, brands & operations at Mercedes Vans.

The cab sports two rows of seats, easily fitting a family of four or a builder’s crew, and will contain many of the same interior components and features typical of Mercedes-Benz’s cars and vans. There will be a luxury version with leather interior and chrome furnishings. And there will be a more robust version with a washable interior for the workhorse.

MercedesMe, the company’s infotainment system, will be onboard, officials said.

Mr. Mornhinweg dismissed speculation that Mercedes also is planning to launch a full-size truck in the U.S. market against such popular trucks as Ford Motor Co.’s F-150 and General Motors Co.’s Silverado and Chrysler’s Ram.

“The full-size segment is too specific for the U.S. It’s not a global market,” he said. “And it’s dominated by the Big Three. It makes no sense to go there.”

The market for midsize trucks in the U.S. could be a niche, especially since those are vehicles that manufacturers can sell in other global markets.

Mercedes hasn’t decided yet whether to take its coming pickup onto U.S. roads, where the midsize market is dominated by Toyota Motor Corp.’s Tacoma, GM’s Chevrolet Colorado and GMC Canyon and Nissan Motor Co.’s Frontier, which cost about $21,000 and up in the U.S.

But foreign manufacturers are watching with interest the recent growth in U.S. pickup truck sales, including growing demand for midsize trucks.

“Auto makers continue to study the option—especially those that see the U.S. makers benefiting from an uptick in U.S. pickup sales,” said Stephanie Brinley, an IHS analyst.

Mercedes confirmed in March 2015 that it was readying a new mid-size pick-up - its first double-cab to disrupt the predominantly American and Japanese truck scene. We’ve interviewed the chief of Daimler’s commercial vehicle division and produced exclusive renderings to show how the Merc pick-up will look.

Read on for our scoop dossier on what is rumoured to be badged the GLT. Which certainly sounds better than the implausibly codenamed Project Andrew, Daimler’s in-house name for its pick-up project.

Why is Mercedes doing a pick-up?

Expansion is the catchword of M-B’s future product strategy - and that applies to vans and trucks as much as cars, according to the manager in charge, former AMG chief Volker Mornhinweg who’s working on the three-pointed star’s trucklet.

‘We are not going to develop a fat cowboy truck for North America,’ he tells CAR. ‘After all, the big three - Ford, GM/GMC and Ram - already own about 90% of that market which typically absorbs in excess of two million units per year. In this cut-throat environment, newcomers like us would invariably fight an arduous uphill battle. That’s why our focus is on a smaller and lighter pick-up truck which is already perceived as premium product in South America, Africa and the Middle East.’

How big is the worldwide market for pick-ups?

The take rate for mid-size trucks is around 2.3 million units per annum, according to Daimler. The long-time leader of the pack is Toyota which sells around 700,000 of its Hilux/Tacoma twins. Next in line are Nissan, Isuzu, Ford and GMC. The VW Amarok has managed to secure a modest 3% stake of the action since launch in 2010.

At this point, Mercedes will not yet talk numbers, but even optimists are struggling to forecast more than five figures in the short term. Although the Sprinter is produced in five different plants spread around the globe (and sold in 130 territories), the existing industrial footprint will not easily manufacture the pick-up due in late 2018 or early 2019, sources say.

Instead, Mercedes is tipped to enter a cooperation with Nissan, which recently introduced the new D40-generation Navara built in Thailand and Mexico. The Germans are said to be particularly interested in the factory in Aguascalientes which operates under the NAFTA umbrella.

Mercedes and Nissan to co-produce the pick-up

Daimler is already collaborating with Renault-Nissan globally, don’t forget. The Smart Fortwo/Forfour and Infiniti Q30 are all joint ventures - and it sounds like the Mercedes GLT could be next. The common denominator of this still tentative joint venture is a modular components set consisting of ladder frame, axles and body structure. Exterior, interior and engines would be brand-specific.

‘Modern pick-ups are becoming increasingly car-like,’ said Mornhinweg. ‘We shall take account of this trend by offering a wide choice of drivetrains as well as three different equipment levels provisionally labelled workhorse, dual use and leisure and family. Marketing expects dual-use to be the undisputed best-seller with the base and premium packs splitting the remaining 50%.’

Four- and six-cylinder engines are earmarked for the GLT, in petrol and diesel flavours. According to a person familiar with the business case, prices are going to start around $30,000 (£21,000) in the cheapest markets.

As an alternative to the standard live rear axle, buyers may specify an independent suspension as well as 4Matic AWD. Those who don’t feel like operating a six-speed manual transmission are encouraged to opt for the seven-speed automatic. The only area where you do not have a choice is bodystyle - of which there is only one, namely a four-door twin-cab, depicted in our renderings by Designwerk (first and second image in the gallery).

Mercedes GLT: a smarter kind of pick-up

‘The customers out there are waiting for the Mercedes among the mid-size pick-ups,’ Mornhinweg told CAR. ‘We shall give them exactly what they ask for: impeccable fit and finish, top-notch safety and comfort, excellent vehicle dynamics and state-of-the-art connectivity. Yes, our vehicle looks plain and simple. But it is highly functional, it offers best-in-class passenger space in row two, the ergonomics leave nothing to be desired, and the materials used clearly exceed typical pick-up standards.’

Special features include an electric rear window in lieu of a sunroof, three different cabin style and equipment levels, a classy instrument panel inspired by GLE and GLC, a tall and wide dual cab and a tailgate which can be locked at a 90deg or 180deg angle.

Just about the only detail of the modern Mercedes pick-up which reminds us of its much more basic ancestors is the traditional lever-operated handbrake.

Mercedes GLT

Following an extensive development program during which the 3-pointed star's engineers made sure that everything functions as it should, thenew Mercedes-Benz pickup truck is set to be revealed soon.

According to TF1, the truck, which could wear the GLT-Class or Class X moniker, will be presented on October 25, during an invite-only event, before it will make its way to the 2016 Sao Paulo Motor Show, in Brazil, for its world premiere, on November 8.

Rivaling the likes of the Volkswagen Amarok, Toyota Hilux, and others in the segment,Merc's pickup is underpinned by the same platform as the Nissan Navara, which is also used on the new Renault Alaskan. The engine lineup is believed to come mostly from the Navara and include the 2.3-liter dCi four-cylinder, twin-turbo diesel engine, with 160 HP and 190 HP, joining probably a second engine from Mercedes-Benz's range.

Global sales of the as-of-yet unnamed vehicle will commence next year, as it was announced in Daimler's map of future products, and it will be put together at Nissan's plants in Barcelona, Spain, and Cordoba, Argentina, from where it will be shipped to Europe, Latin America, South Africa and Australia. Its unknown if Mercedes will offer the truck in North American.

Mercedes-Benz recently confirmed that its bold new pickup truck would debut on October 25. Unfortunately, we now know that it'll just be a concept version.

As the reveal date edges closer, the German automaker has dropped the first teaser of the pickup, believed to be dubbed the GLT. It confirms that the car initially presented will be a concept and that the model will adopt a similar shape to the Nissan Nivara on which it is based.

The image also reveals that the Mercedes pickup will be built with four doors, at least initially, and includes traditional pickup truck proportions as well as a sharp lip spoiler extended out over the tailgate.

Based on recent spy shots and videos, it seems apparent that the model will also have a familiar Mercedes-Benz front fascia with headlights similar to those of the brand's ever-growing SUV range.

As the model will be based around the same architecture as the Nissan Navara, it is expected to receive the same selection of engines, meaning a 2.5-liter petrol, 2.3-liter diesel and 3.0-liter diesel V6 will be available.

Mercedes-Benz has previously said that the model will target customers in Latin America, Australia and South Africa.