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Weekly Recap: Mercedes, Volkswagen spend big as import automakers invest in North America

Import automakers are on a building frenzy in North America as resurgent car sales have prompted companies to expand their manufacturing footprints to meet rising demand. That was evidenced this week when Mercedes-Benz announced plans to build a $500-million factory to produce the Sprinter commercial van, and Volkswagen confirmed a whopping $1-billion investment to expand its massive plant in Mexico. Meanwhile Jaguar Land Rover reportedly wants to build a factory in North America, but not for at least three years, and Hyundai is said to be expanding in the southern United States. The common thread in all of this expansion? Trucks, time and money. Mercedes wants to capitalize on the burgeoning work van segment in the United States and will break ground in 2016 on a 200-acre site in Charleston, SC, to build the next-generation Sprinter. The site will have a paint shop, body shop and an assembly line, and 1,300 people will be employed when production ramps up. Why do this, when Mercedes has immense van operations in Germany? It's cheaper to build in the US for the US market. Building locally allows Mercedes to avoid import taxes, forego a complex shipping process that involves partially disassembling German-built Sprinters and naturally, reduces the time it takes to deliver finished trucks to their buyers. "This plant is key to our future growth in the very dynamic North American van market," Volker Mornhinweg, head of Mercedes-Benz Vans, said in a statement. He was speaking about Mercedes and vans, but another German automotive giant, Volkswagen, had similar motives for its mammoth expansion plans in Puebla, Mexico. The added space and production capacity will allow VW to build a three-row version of the Tiguan, and provide another crossover for its US lineup that's light on SUVs. The current Tiguan has two rows. The factory will be able to churn out 500 units daily of the larger variant, and they will be sold in North and South America. It will arrive in the US in mid-2017, a spokesman told Autoblog. VW also plans to build another crossover, a midsize seven-passenger vehicle, at its growing Chattanooga, TN, site. "Localization has become key to safeguarding our competitive position on the global market, and manufacturing the Tiguan in Mexico will bring production closer to the US market," Michael Horn, CEO of Volkswagen Group of America, said in a statement.

Recharge Wrap-up: new Gigafactory drone video, Mercedes valet

A new, Tesla-approved drone video shows the progress of the Gigafactory. Recently, a video surfaced showing what Elon Musk said was just the "pilot plant," which is only a quarter of the size of the final planned Gigafactory. This new video not only shows the structure, but also the site surrounding it. We see more steel beams waiting to be erected, suggesting that the footprint of the finished building will be even more massive than that of the current standing structure. And if what Musk says is accurate, we've got a lot more to look forward to. Have a look in the video above, and read more at Teslarati. Tesla is paying hackers to find bugs in its website and products. In a posting on Bugcrowd, the electric automaker calls on "security researchers" to find vulnerabilities in the site itself, any domains owned by Tesla, any Tesla apps as well as Tesla hardware owned by the hacker like a Model S or the Powerwall. In exchange for the hackers' service, Tesla is offering rewards ranging from $25 to $1,000 for reported vulnerabilities. Tesla also promises not to sic the law enforcement on hackers who step forward to help, as long as they follow the rules. Read more at Teslarati. Daimler and Bosch are working on automated parking for Mercedes-Benz. In a properly equipped parking garage, the car would find an empty space and park by itself, and return to the driver when called upon. The groups are starting a pilot project for the autonomous valet feature with carsharing service Car2go, where it works the other way around. Customers will be able to call a car to a pick-up zone using a mobile app. When finished, the customer leaves the car in the drop-off zone, and the car takes care of the rest on its own. "Fully automated parking will be ready for mass-production before fully automated driving," says Bosch's Dr. Dirk Hoheisel. "Low driving speeds and the information from the car park infrastructure enable a fast implementation." Read more in the press release from Daimler. Volta has raised $7.5 million in funding to expand its free EV charging network. To offer free charging, Volta's chargers essentially perform double duty as billboards for what Volta calls "companies with a vested interest in the community." "Early Internet pioneers like Google became industry titans by first offering free consumer services online paid for by companies that advertised on their platforms," says Volta CEO Scott Mercer.

Mercedes-AMG planning hybrid hypercar?

It used to be that, a few overlapping two-door models aside, Mercedes-Benz and Porsche didn't really compete with one another. That's how the two ended up collaborating on projects like the Mercedes 500 E that put it on the performance sedan map without fear of stepping on each other's toes. But Porsche has grown considerably since then, challenging its Stuttgart neighbor with four-door sedans and crossovers, as well as sports coupes and convertibles. Little wonder, then, that Mercedes has hit back at Porsche with the AMG GT, and there will be many more versions to follow in 911 style. But that may not be the final salvo the Silver Star marque launches at Zuffenhausen. According to the latest bit of speculation and deduction from our friends at Motor Trend, Mercedes-AMG may be planning a hybrid hypercar of its own to take on the Porsche 918 Spyder – not to mention the McLaren P1 and LaFerrari. Solid information is sparse at this point, but after speaking to AMG chief Tobias Moers, MT speculates that the new flagship will likely be mid-engined, with a boosted version of the company's 4.0-liter twin-turbo V8 kicking out between 650 and 700 horsepower, working with a pair of electric motors at the front to deliver tenacious through-the-road all-wheel traction and a combined output in the thousand-horsepower range. There is the possibility, though, that Mercedes could go after the latest hybrid hypercars with a flagship version of its just-launched AMG GT, packing a similar powertrain setup as the ultimate evolution of the breed. Other GT versions will likely soon include a GT3 racing model, a Black Series version and a roadster – following a similar path taken not only by the 911, but also by Benz's previous halo supercars like the SLR McLaren and SLS AMG.