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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.

Weekly Recap: Autonomous driving goes commercial in Nevada

Nevada granted Daimler Trucks North America the first license to run an autonomous commercial vehicle on public roads in the United States Tuesday, marking another milestone in the technology's rapid advancement. Gov. Brian Sandoval and Daimler truck chief Wolfgang Bernhard promptly used the license to lap Highway 15 near Las Vegas in a newly revealed Freightliner Inspiration Truck. It was a clear signal that autonomous driving is big-rig reality, though it's still a long way from widespread use. Nevada certified two of Daimler's Freightliner Inspiration Trucks, which use the company's Highway Pilot system with a stereo camera, radar, and lane-keeping collision-prevention features to regulate the brakes and steering. The radar component has a long-range sensor that can cover 820 feet at an 18-degree angle and a shorter-range unit that stretches 230 feet at a 130-degree angle. The Inspiration trucks are based on the existing Freightliner Cascadia Evolution model used on US roads. In addition to the autonomous technologies, it also has futuristic design cues, including blue lighting in the front and a new hood and grille. While there are only two Freightliner Inspiration trucks in existence, Daimler expects to bring the Highway Pilot system into mass-produced big rigs by 2025, in time to capitalize on the market's predicted growth. The German truckmaker predicts the global hauling market will triple by 2050, and the United States will be a key part of that growth. Trucks carry 69.1 percent the nation's domestic freight tonnage and hauled 9.7 billion tons of freight in 2013, according to the American Trucking Association. Daimler expects autonomous driving to augment this growth, and perhaps evolve the role of the truck driver. Still, the company points out autonomous tech is not meant to replace drivers, but to assist them and relieve fatigue and monotony on long hauls. The driver has to stay in control for passing, in city traffic, and when hooking up the trailer. The company said autonomous driving also offers the potential for improved fuel economy – tests showed a five-percent gain – and lower maintenance costs. Daimler also said the technology could reduce congestion on the road. Much of this is attributable to the constant flow of traffic, which is aided by autonomous driving. While the benefits are becoming increasingly apparent, autonomous technology is still met with skepticism.

We drive the Bronco Sport Sasquatch, Hummer EV SUV and more | Autoblog Podcast #846

In this episode of the Autoblog Podcast, Editor-in-Chief Greg Migliore is joined by Road Test Editor Zac Palmer. Zac recently went down to Tennessee to drive a prototype of the 2025 Ford Bronco Sport Sasquatch. Meanwhile the two also spent time in the 2024 GMC Hummer EV SUV, 2024 Mercedes-AMG GLA 35 and 2024 Lexus LS 500h out of the fleet in Michigan. In the news, Rivian deals with a fire at its Normal, Illinois plant, Formula 1 comes back strong, and Volkswagen prices the ID.Buzz. Lastly, the two debate what old, executive sedan you should buy in a Spend My Money segment. Send us your questions for the Mailbag and Spend My Money at: Podcast@Autoblog.com. Autoblog Podcast #846 Get The Podcast Apple Podcasts – Subscribe to the Autoblog Podcast in iTunes Spotify – Subscribe to the Autoblog Podcast on Spotify RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Rundown Cars we're driving 2025 Ford Bronco Sport Sasquatch 2024 GMC Hummer EV SUV 2024 Mercedes-AMG GLA 35 2024 Lexus LS 500h News Fire at the Rivian factory Formula 1 is back Volkswagen ID.Buzz gets a very high price Spend My Money Feedback Email – Podcast@Autoblog.com Review the show on Apple Podcasts Autoblog is now live on your smart speakers and voice assistants with the audio Autoblog Daily Digest. Say “Hey Google, play the news from Autoblog” or "Alexa, open Autoblog" to get your favorite car website in audio form every day. A narrator will take you through the biggest stories or break down one of our comprehensive test drives. Related Video:  We check out the Rivian R1S and R1T along with 3 other surprises This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.