Mercedes-Benz might have to postpone--or even cancel--the arrival of the hybrid M-Class SUV, over a dispute with onetime battery supplier Cobasys.

The hometown newspaper for the M-Class, the Tuscaloosa News, says a dispute with Michigan-based Cobasys is triggering concern at the Mercedes-Benz U.S. International plant in Tuscaloosa County, Ala., where the M-Class and its bunkmates, the R-Class and GL-Class, are built.

Cobasys was supposed to supply battery packs for the new hybrid, but in a lawsuit filed in federal court in Birmingham, Ala., the Daimler subsidiary says Cobasys misrepresented its finances and refuses to honor a deal to make the batteries.

The lawsuit says no other source can be found. Production was due to start in June on the V-8 hybrid, with the diesel model pictured here carrying the burden for high fuel economy.

Yesterday, TheCarConnection.com had its first short stint behind the wheel of the new 2010 Mercedes-Benz GLK. This morning, after a brief autobahn run southeast from Dusseldorf, I drove the new GLK on a special off-road course set up by Mercedes at the Schloss Ehrenhoven, in the Bergisch Gladbach forest.

One keen point off-roaders need to know before stepping up for a GLK: all the vehicles on my drive were outfitted with an Off-Road Engineering package that won't come to the U.S. That package includes a version of hill descent control, called Downhill Speed Regulation, along with a set of off-road tires. Mercedes execs says U.S. customers haven't warmed up to the off-road packages on other vehicles like the GL-Class, so the extra hardware won't be offered on the smaller, softer GLK.

With the package, on the intentionally rutted trail, the GLK moved impressively through a set of engineered traps. The GLK uses the latest version of 4Matic, which Mercedes first put on the ML-Class ten years ago. Essentially an open-differential system where wheelspin is limited by anti-lock braking--working as virtual locking diffs--the newest version has processors that work faster and brakes that clamp harder, giving more precise traction control in a variety of situations. The power is split usually at 45:55, but adjusts as the various traction systems determine where torque is needed most. It's no Land Rover LR2, in that the emphasis inside and out isn't on off-roading, but the GLK acquits itself nearly as well off-road as the last LR2 I drove. It's quite close, in fact, to the feel of the LR2 and the BMW X3, with light-touch steering that doesn't wrench out of your hands when crossing obstacles. The lone objection, were you to use it extensively off-road, is that the V-6's torque band isn't the best solution to smooth, effortless crawling.

There's a diesel version on display, though, which does offer the kind of low-end torque off-road drivers love. It also offers the kind of fuel economy U.S. drivers are beginning to love, and indeed, Mercedes says it's likely the turbodiesel will come to the U.S. market sometime after the GLK is launched in America early next year.

After more on-road driving time this afternoon, I'll put together our Bottom Line on the new GLK so you'll get TheCarConnection.com's take on its styling, performance, comfort and quality, safety and features. In the meantime, here's a quick video clip of the GLK moving through a classic articulation exercise, and catching some serious air under each of its wheels:





Earlier this year at the Detroit auto show, Mercedes-Benz showed us its new GLK, a compact SUV with a crisp shape and the promise of city-sized utility. This week, I'm over in Germany getting a first look and a first drive of the GLK, which promises to give BMW's X3--and Audi's new Q5--a run for their Euros.

With vehicles like the X3, the Q5 and most closely, the Land Rover LR2 in its sights, the Mercedes-Benz GLK goes on sale in January 2009 in 4Matic four-wheel-drive form. A rear-drive version will come over from Mercedes' Bremen factory in April 2009. Both 2010 models will carry a base price "with a 3 in it," Mercedes execs said at the worldwide press launch of the new sport-ute.

But while the Audi Q5 bears a striking resemblance to the larger Q7, the GLK isn't anything like the next-bigger ML-Class. "Everybody expects us to have a smaller ML," says Dr. Klaus Maier, head of sales and marketing for Mercedes-Benz. The new GLK had to have "a different character," he insists. And while Mercedes draws comparisons to its touchstone G-Class, what the GLK most resembles--other than the LR2 and some Japanese crossovers--is Benz' seven-passenger GL-Class.

When it comes to size, though, the GLK will be the smallest activity-oriented vehicle in the company's lineup. The GLK's interior space is less than that of the C-Class Wagon, Maier says, but the GLK sits higher, with a higher driving position and more vertical volume than the C-Class Wagon. The coefficient of drag is 0.35.

U.S. versions of the GLK will come only with a 3.5-liter V-6 with 268 horsepower, a seven-speed automatic and an interior dressed in burled walnut at launch. The gas-powered version hits 60 mph in about 6.7 seconds, according to company estimates.

Other engine options are a possibility, Maier says--including the likelihood of a version of the 2.0-liter diesel that will be the mainstay powertrain for the GLK in Europe. "Diesel will be an option at some point" in the U.S., Maier says.

American versions will carry power front seats as standard equipment, along with Bluetooth, the adjustable "Agility Control" suspension, 19-inch wheels, and a panorama sunroof. A six-CD changer, Sirius Satellite Radio, a rear-seat DVD entertainment system, a power liftgate, a navigation system, and 20-inch wheels are among the options.

I'll have more driving impressions for you tomorrow as we hit the road--and the off-road trails--with the new GLK in about eight hours' time.

We've just driven the all-new 2009 Kia Borrego. During our press-only activities, Kia attempted to convince us that their new body-on-frame mid-size SUV is a player against luxury SUVs.

It's not.

But here's what it is: a handsome, competently engineered, well-executed sport ute with loads of features offered at a typically low Kia price. See if you agree, as the Borrego officially goes on sale at the end of July.

While some may question the wisdom of introducing a non-crossover SUV with an available 337-horsepower V-8 as gasoline closes in on $5 per gallon, realistically, truck-based SUVs are not going to disappear. Experts who prognosticate about such things expect that mid-size SUVs will continue to sell over 1 million units per year for the next several years. This represents a big target for nimble Kia.

In addition to competing for mid-size ute shoppers alongside Jeep, Honda, Nissan, and Toyota, Kia sees an opportunity with the mid-size Borrego as buyers flee full-size SUVs. Today, mid-size is the new full-size, and this ute's V-8 economy of 15 mpg city/22 mpg highway (two-wheel drive) looks better than what some drivers have been living with.

As for our impressions of the 2009 Borrego, we spent most of our time in the V-8-powered top-of-the-line EX model shown above. Its exterior is attractive and totally free of anything controversial. The base LX models looks much the same.

Inside, our EX's leather-lined interior gains fame not so much for its luxurious fitments but for its ample room (more than a Ford Explorer), high level of equipment, and thoughtful layout of its controls. Three rows of seats are standard, and the third row is not a penalty box as it is on some SUVs such as the Toyota Highlander.

Regarding performance, our experience in a 276-horsepower, 3.8-liter V-6 Borrego EX proved the powertrain to be completely adequate. But fitted with the 4.6-liter V-8 (based on the V-8 developed for the Hyundai Genesis sedan) and a ZF-sourced six-speed automatic, our EX performed with refined gusto. The quiet V-8 smoothly powered our Borrego to well past 100 mph, and the four-wheel disc brakes hauled it back down again with genuine alacrity.

The chassis handled well, even over broken pavement. Thanks to the body-on-frame construction and available V-8 power, the Borrego can be outfitted to tow up to 7,500 pounds. ABS and electronic stability control are standard.

As we have come to expect from all Kia vehicles, the company loads up its vehicles with standard safety features. Six airbags are standard, including a side curtain system that extends back to protect all three rows of seating.

One day in the not-too-distant future, Kia won't have to beg for credibility. Its products will have spoken for the brand, and its rightful place as a serious manufacturer of high-quality vehicles will be secured. --Rex Roy

TheCarConnection.com's spies spotted BMW's X6 Active Hybrid undergoing hot-weather trials in Death Valley.

Three BMW X6 Hybrid cars were spotted, but one of the test vehicles showed one important difference, as its final hood design was visible for the first time on a real-world prototype. Two of the prototypes showcased enormous hood bulges, but the third prototype's hood--while still bulging more than a standard X6--looks clean with a tastefully integrated bump sculpted in near the cowl.

These details lead us to the conclusion that the production X6 Hybrid will take its visual inspiration from BMW's X6 Active Hybrid concept. Whether the revised hood bulge is there to make room for some hybrid-specific hardware or if its sole purpose is to signal one's green-leaning tendencies is currently unknown.

Stay tuned for more on the 2010 BMW X6 Hybrid.--KGP Photography