It's time to throw some ideas against the wall and see what sticks. Disclaimer: I have no inside knowledge to back up any of what follows. This is all pure speculation based on putting together some puzzle pieces that may or may not actually fit. Let's begin with a few things that we do know:

Daimler and Tesla Motors have some sort of deal, but we have no knowledge about the details. This news came out of an interview that Tesla Chairman Elon Musk did with Fox Business News a couple of months ago. At the time I speculated that this could be either a deal to license some battery management technology to Daimler or for the Germans to supply the Smart engine to Tesla as a range extender for the Model S. We now know that the idea of an ER-EV Model S has been discarded which brings us back to the first idea.

Recently we've heard about a couple of different Daimler projects that involve batteries. One is the ML450 hybrid. Mercedes has a contract with Cobasys to supply nickel metal hydride batteries for the ML450. However, business problems at Cobasys have led Mercedes to file suit against the company. A Mercedes spokesman told ABG that the program is still on track but did not comment on whether a sourcing change would be made. Continue reading this twisted little tale after the jump.

Big Sib Autoblog has posted details on the SMART fortwo EV electric vehicle. The EV, which debuts at the British Motor Show next week, will later be leased to various corporate fleets throughout the UK on a trial basis. SMART maker DaimlerChrysler will then evaluate and see if it will expand production of the diminutive vehicle or even sell it to the U.S. States Mercedes Car Group. Managing Director Dermot Kelly said, "A market trial of the SMARt fortwo EV is a significant step for the Mercedes Car Group as it is an important part of our commitment to sustainable mobility."

The SMART fortwo EV stats are impressive. The 30kW engine has a 72-mile range and top speed of 70 mph. And its ability to hustle from 0-30 mph in 6.5 makes it even faster than its petrol-sibling.

Full press release can be found at the link.

[Source: DaimlerChrysler via Autoblog]