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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.

Five B-Class F-Cells go from SF-LA using public hydrogen stations

California's hydrogen islands in Los Angeles and San Francisco finally got the bridge they needed to become the "Hydrogen Highway." With the completion of a permanent public station in Coalinga built by FirstElement Fuel, 205 miles north of LA, 183 miles south of SF, fuel-cell-vehicle owners can complete the road trip without worry. Mercedes-Benz did just that with five B-Class F-Cell customers, spending three days covering 1,000 miles and filling up only at public permanent stations in Burbank, Coalinga, West Sacramento, and Emeryville. Mercedes says there are ten stations in California now, but more than 40 are scheduled to open in 2016, and about ten more every year after that through 2023, when there should be 123 open stations. The company's US fuel-cell fleet is 70 strong and has covered more than two million miles in the five years they've been on the roads here. On average that means each car has driven just 5,714 miles per year, but that number should go up now that they can stretch their hydrogen stacks. The press release below has more information. Nearly 1,000 fuel cell electric miles: Crossing California on Hydrogen - Five Mercedes-Benz B-Class F-CELL complete emission-free drive from Los Angeles to Northern California while only filling up at public hydrogen stations - "California Hydrogen Highway" is connecting the dots - U.S. F-CELL customers have accumulated over 2 million miles since 2010 Stuttgart, Oct 27, 2015 - Mercedes-Benz B-Class F-CELL customers ventured beyond Southern California last week for the very first time, while only filling up at existing public hydrogen stations along the route from Los Angeles to San Francisco. The opening of a new hydrogen station in Coalinga along the I-5 corridor made this opportunity possible. A team driving five B-Class F-CELL refilled at four permanent hydrogen fueling stations located in Burbank, Coalinga, West Sacramento and Emeryville, accumulating nearly 1,000 miles over the course of their three day trip. Three F-CELL customers were accompanied by a team from Mercedes-Benz Research and Development North America based in Long Beach. The purpose of this unique road trip was to highlight the growing hydrogen station network and to show that the vision of the California Hydrogen Highway is becoming reality. Early adopter Loki Efaw who has been an F-CELL driver since 2011 believes fuel cells are the future: "I don't want a car that only takes me to work and back before I have to plug it in.

Mercedes may be working on a new electric car dubbed 'Ecoluxe'

Automobile has a lengthy piece this month on how the four German mass-market luxury manufacturers each plan to go after Tesla with their own electric vehicles. It was written by Georg Kacher, the magazine's European bureau chief, and the English version came a month after he wrote the German-language original for Autobild. Tesla isn't exactly a threat to the Germans, but, according to the report, the Model S is planting the right kinds of seeds in niches that are important to the luxury players. The thinking is that - in addition to needed electric vehicles anyway for stricter US regulations - it's better to start designing the machinery now. The article posited Porsche's attack would rest on the coming Panamera platform, but a big hurdle would be battery placement. Unable to find one large space for a lithium-ion pack, engineers would instead put batteries everywhere they could, for a supposed tally of some "108 battery pouches" throughout the body. A few days after the Automobile piece, however, Porsche publicly said it had no intention of challenging the Model S, because the enthusiastic driving the brand is known for doesn't jive with useful range. In Kacher's retelling, Mercedes' plans are even more ambitious, supposedly taking aim at the Model S and the coming Model X. It would do this with an investment in excess of $2 billion in a program called "Ecoluxe" – Mercedes has no brand division akin to BMW's i and Audi's e-tron. The new brand would create a four-strong family of bespoke electric vehicles: a smaller platform with a wheelbase around 106 inches and a larger one with a wheelbase around 118 inches. In addition, the range would have "provisions for rear-wheel drive, all-wheel drive, and rear-wheel steering." The numbers are impressive: seating for seven in the larger vehicles, both longer than 16 feet, front and rear storage areas, ratings of up to 610 horsepower and production capacity of 80,000 units per year. When would we see such creatures? Perhaps as soon as 2019. We do know that if Tesla can knock the Model X over the outfield fence, automakers are going to have to do something. We don't know what the chances are that Ecoluxe is Mercedes' first move - but such a plan could help explain the weird Mercedes concept spied in October.