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Zetsche's CEO tenure extended through 2016 at Daimler

There appear to be two takes on Daimler CEO Dieter Zetsche having his contract extended for three more years, to 2016. A report in The Detroit News quotes the chairman of Daimler's supervisory board, Manfred Bischoff, talking up the stability at the top, "With today's extensions of the contracts of Dieter Zetsche and Thomas Weber, we are maintaining the important continuity at the top executive level." Bischoff also stated that that Zetsche has a plan to "further enhance Daimler's overall performance."
Over at Reuters, though, the three-year extension was seen as a lack of complete confidence in Zetsche's plans, since his contract was supposedly meant to be extended by five years. A spokesman said the board decided to extend executive contracts by only three years if the person was 60 or would turn 60 during the contract, but that was news to observers. Zetsche wants to make Mercedes-Benz the top selling luxury manufacturer globally by 2020, but has fallen to third place behind Audi and BMW. It hasn't held the top spot 2005, and investors judged it valued at half that of BMW at the end of 2012 once Daimler's truck business was subtracted.
Analysts cites the fact that Daimler stock hasn't bested its rivals but twice in twelve years, and that the company revised its profit target downward last year by nearly one billion euros, warning of stagnant earnings this year and will miss its original margin target for 2013.

Mercedes invests $1.3 billion to expand Alabama factory

Mercedes-Benz announced a $1.3-billion investment Friday in its Tuscaloosa, AL, factory to increase SUV production capacity. The move comes on the heels of Autoblog's exclusive report that the GLC Coupe Concept will enter production as the German luxury marque continues to push for increased SUV sales. The investment will add 300 jobs to the approximately 3,500-strong workforce. The facility will be responsible for what Mercedes calls "the next SUV generations," which makes it sound like the plant will continue to assemble the GLE-Class and GL-Class SUVs, as well as the C-Class sedan. The next-gen SUVs built in Alabama will include hybrid variants, Mercedes said. Upgrades to the sprawling 5-million-square-foot facility include a new 1.3-million-square-foot body shop that will implement modular construction techniques. As for the current body shop, it will be expanded by nearly 140,000 square feet and will receive a larger "marriage" station, for pairing bodies and powertrains. Finally, the entire facility will receive a major IT upgrade. "In the next years we invest $1.3 billion in the expansion of our SUV production and turn the Mercedes-Benz plant Tuscaloosa into a high-tech location," Mercedes' Markus Schafer said in the attached release. "In this way we can produce the next SUV generations even more flexibly, efficiently and in proven top quality." If you're interested in the nitty gritty particulars of the announcement, you can read all about them in the official press release. Mercedes-Benz Tuscaloosa Plant: Mercedes-Benz invests $1.3 Billion in the expansion of its SUV production Tuscaloosa, Alabama, USA / Stuttgart, Germany, Sep 18, 2015 MBUSI (Mercedes-Benz U.S. International, Inc.) to produce future SUV generations including hybrid versions SUV production to be expanded – 300 new jobs New Body Shop, major enhancements to SUV Assembly Shop and upgraded logistics and IT systems Implementation of state-of-the-art technologies and end-to-end digitization of production processes in line with the smart factory approach Markus Schafer, Member of the Divisional Board Mercedes-Benz Cars, Manufacturing and Supply Chain Management: "In the next years we invest $1.3 billion in the expansion of our SUV production and turn the Mercedes-Benz plant Tuscaloosa into a high-tech location.

As US exports top 2 million, is America becoming the world's source of cheap cars?

North American auto production is booming with 2014 figures just shy of the of the 17.3-million vehicle record set in 2000. With more models being built on the continent, even more are being shipped overseas. Factories in the US exported 2.1 million cars last year – the highest number ever. About half of those went to Canada and Mexico, but more than ever have been heading to places like the Middle East and China. The upswing comes in part from from after-effects from the Great Recession, according to The Wall Street Journal. With a weak dollar and lower production costs after the financial crisis, building vehicles in the US was relatively cheaper and more competitive in the world. At the same time buyers around the world are going crazy for crossovers. According to the WSJ, BMW and Mercedes-Benz are already exporting the majority of their US production of these models overseas. Both automakers have also announced investments to expand production further here to send more vehicles abroad. Even Honda has been shipping more models out of the country than it imported here. There is a concern this international strength could start slowing because the dollar is strengthening against other currencies, though it's too early to know what the actual effect of this could be, according to the WSJ. "Of course, we closely watch currency exchange, but we don't make changes in production or allocation based on temporary fluctuations in the exchange rate," Ford North American boss Joe Hinrichs told the newspaper. Related Video: News Source: The Wall Street Journal - sub. req.Image Credit: BMW Plants/Manufacturing BMW Ford Honda Mercedes-Benz exports us auto production