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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.

China's BAIC looks to invest in Daimler

Daimler and Beijing Automotive Group (BAIC) are already intertwined in China. Daimler is a 12-percent shareholder in BAIC Motor, the third largest shareholder in the passenger-car division of BAIC. They have a joint manufacturing venture Beijing Benz in which BAIC is the majority partner by one percent, a sales joint venture Beijing Mercedes-Benz Sales Service Co. in which Daimler is the majority partner by one percent, and Daimer says, "BAIC is our most important partner in China." Beijing Benz is ten years old this year. They'll become even closer if talks between the two concerning BAIC taking "a major stake" in the German conglomerate come to anything. Reuters reports that the two are in talks now, with BAIC Chairman Xu Heyi saying it should be resolved one way or another by the end of this year. If they agree, the China-based, Hong Kong-listed company will join Renault-Nissan and the Kuwait Investment Authority as Daimler's top shareholders. Some China analysts see a potential Daimler investment as a coup for BAIC, similar to BAIC's 2009 purchase of old Saab platform, engine, and transmission technologies, that would give it access to technologies it wouldn't have to develop on its own and hastening the development of its own cars. A deal is also seen as potentially opening up export possibilities for the Chinese company. Other analysts aren't sure that BAIC would get any useful technology, noting that that last deal between the two gave BAIC the outdated E-Class platform, but none of Mercedes' headline tech. If a deal is done, BAIC will join Dongfeng Group and SAIC as Chinese automaker investors in western automotive companies.

Escape the dinosaurs in Jurassic World with Mercedes-Benz [w/video]

This year looks to be a big one for blockbusters. Furious 7 and Avengers: Age of Ultron are already hits, and more major premieres are on the way all the way up to the return of Star Wars in December. One of the next highly anticipated flicks due is Jurassic World, and Mercedes-Benz is throwing its marketing muscle behind the movie to showcase some of the brand's rugged vehicles. While we already know about its appearance in the film, the GLE-Class Coupe gets to play a pretty big role because Bryce Dallas Howard's character drives one of the new crossovers around the dinosaur-infested island. As previously teased, a G63 AMG 6X6 also plays a part in the flick. Mercedes is showing off a standard G-Class, Unimog, and Sprinter to do some offroad work in the park, as well. Among the advertising efforts, Mercedes has a print ad for the GLE-Class Coupe with the film's monstrous Indominus Rex dino, and you can check it out in the gallery above. Also, the company has a commercial showing off some of the vehicles in action in the movie, which you can watch below. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Mercedes-Benz Launches Campaign to Support Universal Pictures and Amblin Entertainment's Jurassic World The dinosaurs are back Stuttgart. This summer, when the long-awaited next installment of the groundbreaking Jurassic Park series, Jurassic World, arrives in theaters, an entire fleet of Mercedes-Benz vehicles will share the spotlight. Alongside the iconic G-Class, Unimog, Sprinter models and the all-new GLE Coupe will play a leading role in the epic action-adventure. Mercedes-Benz will accompany the release of the film with a comprehensive co-promotional package that includes a television commercial, print and online advertising, dedicated microsites and social-media activities. The commercial, starring the Mercedes-Benz vehicles from the film, launches today in the U.S. and Europe. Additionally, a custom key visual was developed for all communication in which the all-new GLE Coupe is seen eye-to-eye with the film's fearsome Indominus rex. "In 1997 the Mercedes-Benz M-Class made its first official appearance in the Hollywood Blockbuster 'The Lost World: Jurassic Park'. Today, 18 years later, another Mercedes-Benz car will debut in a significant role in the latest installment of the groundbreaking Jurassic Park series named Jurassic World: the new GLE Coupe", says Dr.