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How tariffs in China could cause a meltdown in the American South

While BMW is clearly a German company, the crossovers that are exceedingly important to it are actually made in Spartanburg, South Carolina. And more than that, the Spartanburg plant (physically located in the town of Greer) is where the corporate know-how and capability for those vehicles is concentrated. These are the vehicles – specifically, the BMW X3, X4, X5, X6, X7 – that drove record growth for the company in 2018, according to BMW. But whatÂ’s most notable about BMW Group Plant Spartanburg, given current events, is that according to the U.S. Department of Commerce it was the largest automotive exporter by value for the fifth year running in 2018. ThatÂ’s worth emphasizing: largest automotive exporter by value. Not GM. Not Ford. BMW. And where might one assume that more than a few of those X vehicles are shipped to? China. Some 360 miles southwest of Spartanburg is Mercedes-Benz U.S. International, Inc., in in Tuscaloosa County, Alabama. It started building vehicles in 1997. Since then, Daimler AG has invested in excess of $5.5 billion in the facility. It manufactures the crossover now known as the GLE, formerly the ML-Class. It also makes the GLE coupe and GLS. Daimler describes the Tuscaloosa facility as “the traditional home of SUV production” for those vehicles. When it reported its global 2018 sales, Daimler noted that on a global basis SUVs account “for more than a third of all Mercedes-Benz sales.” According to the Chinese finance ministry, on December 15th the Chinese government will impose a 25% tariff on automobiles (and a 5% tariff on auto parts) from the U.S. Certainly this is going to have a direct effect on the sales of vehicles that are manufactured in the U.S. and exported to China. BMW and Mercedes are going to take it on the chin for the vehicles that they make in plants that they invested in so heavily in the U.S. Which could potentially mean that people in places like Greer, South Carolina, and Vance, Alabama, are going to find themselves in the crosshairs of the combatants. Soo too could Lincoln, which produces vehicles in places like Louisville, Kentucky (Navigator), Chicago, Illinois (Aviator) and Flat Rock, Michigan (Continental). Although the Tesla Gigafactory 3 is rapidly nearing completion in Shanghai, it is worth noting that vehicles built in Fremont, California, are being sold in China in numbers that donÂ’t make Musk unhappy.

Mercedes calls CLA 'best launch in 20 years' as it warns dealers of tight supplies

It's still in the early going, but it's looking more and more like the 2014 Mercedes-Benz CLA is a verifiable home run for the German brand. According to a new report from Bloomberg, the new small car isn't just widening the sales gap between Mercedes and BMW, it's attracting a new, younger breed of customers into the brand's showrooms. But that early success is straining supplies of the turbocharged four-door.
Dealers have been warned that the first half of 2014 will see limited supplies for CLA, with a letter to dealers indicating that "tight inventories and low days supply" will exist from February through June, despite the car's Kecskemét, Hungary plant running at full tilt.
"This is our best launch in 20 years," said Steve Cannon, the US boss for Mercedes. "The CLA has been a phenomenal success right out of the gate." The numbers certainly support that. We reported in early October that Mercedes moved 2,300 CLAs in its first week on sale, and now Bloomberg is saying CLA sales were almost singlehandedly responsible for Benz's November sales gains. Mercedes' annual sales are up 14 percent through the November, and it's enjoying a healthy 7,600-car lead over BMW.

Mercedes recalling 33k C-Class and CLS-Class models in separate campaigns

Mercedes-Benz is recalling over 33,000 vehicles in the US in separate actions affecting two of its model lines. The larger campaign covers 30,141 examples of the 2015 CLS400 and CLS400 4Matic; 2012-2015 CLS550 and CLS550 4Matic; 2012-2014 CLS63 AMG and 2014-2015 CLS63P AMG. On these vehicles, the LED taillights do not sufficiently illuminate around the sides, and therefore they run afoul of the Federal Motor Vehicle Safety Standard. According to documents posted by the National Highway Traffic Safety Administration (as a PDF, here), "this is due to a software coding issue which leads to the non-activation of a certain LED in both taillamp units." An update of the programming by the dealer fixes the problem. The other recall covers 3,039 units of the 2015 C300 4Matic and C400 4Matic for two possible problems with the fuel delivery module of the fuel tank. First, the locking plate for the part might loosen on some of these vehicles, and that can cause a fuel leak, which is obviously dangerous. Also, the electric wires going into the component might be pinched, which can lead to failure of the fuel pump. Dealers will inspect the models for both issues and will repair any faults they find. Mercedes did not tell NHTSA when owners would receive notification about either of these campaigns when the company submitted the documentation to the agency on March 10. Autoblog reached out to company spokesperson Christian Bokich via email for more information. "We currently expect to be in touch with customers by late March. Customers may continue to drive their vehicles until the recall is performed," he said. Related Video: RECALL Subject : Rear Side Marker Illumination/FMVSS 108 Report Receipt Date: MAR 10, 2015 NHTSA Campaign Number: 15V137000 Component(s): EXTERIOR LIGHTING Potential Number of Units Affected: 30,141 All Products Associated with this Recall Vehicle Make Model Model Year(s) MERCEDES BENZ CLS400 2015 MERCEDES BENZ CLS550 2012-2015 MERCEDES BENZ CLS63 2012-2015 Details Manufacturer: Mercedes-Benz USA, LLC. SUMMARY: Mercedes-Benz USA, LLC. (MBUSA) is recalling certain model year 2015 CLS 400 and CLS 400 4matic, 2012-2015 CLS 550 and CLS 550 4matic, 2012-2013 CLS 63, 2014 CLS 63, and 2014-2015 CLS 63P. The affected vehicles have LED tail lights that may not light on the sides, reducing the rear side visibility of the vehicle. As such, these vehicles fail to comply with the requirements of Federal Motor Vehicle Safety Standard (FMVSS) No.