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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.

Mercedes-Benz G500 4x4 is a 6x6-2 [w/video]

In terms of truly badass off-roaders, it doesn't get much cooler than the Mercedes-Benz G63 AMG 6x6. After all, the thing has three axles powering six wheels, not to mention an AMG-tuned V8 that makes the truck pretty much unstoppable. Call it an exercise in excess, if you will, but we call it super cool. And now, at the 2015 Geneva Motor Show, Mercedes is showing off a slightly less outrageous version of its insane off-roader, called the G500 4x42. And by "slightly less outrageous," we pretty much mean, "with one fewer axle." Sure, there have been some other changes, too – namely under the hood, where the AMG's twin-turbo 5.5-liter V8 has been removed in favor of a new, twin-turbo 4.0-liter V8, good for 422 horsepower and 450 pound-feet of torque. Off road, this thing should be a freaking beast. It can ford depths up to 39 inches, the approach angle is 53 degrees, departure is 54, and the breakover is 47. Talk about all-terrain. Plus, it looks freaking cool, with 22-inch wheels on 325/55-series tires (which can be swapped for a set of 18-inch wheels on 37-inch beadlock tires). We even love the lime green paint it wore upon debut, and are kind of sad the Geneva showcar is painted in this less-awesome silver. Either way, it's certainly a creation to behold. Check it out. Near-series show car G 500 4x42: The G-Class Squared Stuttgart, Feb 21, 2015 -- Only a G-Class can be better than a G-Class. This is the credo followed by the developers with the Mercedes-Benz G 63 AMG 6x6, and they are now stepping up a gear with the G 500 4x42. The basic recipe for this overcomer of everything is simple: take the superior all-wheel-drive powertrain including portal axles from the 6x6 – take away one axle – and blend it all with a newly-developed variable chassis and the series-production G-Class body. A large pinch of V8 power with 310 kW (422 hp), a set of 22-inch 325/55 R 22-sized wheels, carbon-fibre body parts and then just gourmet ingredients from the seductive designo Exclusive range for the interior – and the 5-star menu for all off-road enthusiasts is ready. A new addition to the extreme G-Class model family: the G 63 AMG 6x6 has a model brother in the form of the G 500 4x42. The near-series show car is a new highlight in the superlative-rich history of the G-Class and blends all the advantages of the model series.

Daimler relocating North American headquarters to Michigan

While Mercedes-Benz is moving its American headquarters from New Jersey to Georgia, its parent company Daimler is also relocating from the Garden State. But rather than join its automotive unit down south, Daimler North America is moving to Michigan. The relocation was announced by Michigan Governor Rick Snyder while visiting the Frankfurt Motor Show in Germany this week, and has been confirmed by Daimler in correspondence with Autoblog. Daimler's North American headquarters are currently located in Park Ridge, NJ, a mere five-minute drive from Montvale where Mercedes-Benz USA has been based prior to its move to Georgia. The relocation will see Daimler's North American head office move into the facility that currently houses the company's financial services division in Farmington Hills, MI. The move will bring 30 jobs to Michigan, and is slated to commence in 2016 and conclude "sometime in 2017," according to the company. Now if you're wondering why Daimler is going to Michigan while Mercedes is going to Georgia, bear in mind that a number of Daimler's facilities are already located in the Great Lakes State. In addition to the financial services office, Daimler also operates an R&D facility in Ann Arbor. It also owns Redford-based Detroit Diesel, where the photo above was taken during President Obama's visit in December 2012. Along with the Daimler facility, the governor's office also announced the opening of a new Michigan Europe Center that will seek "to promote trade and export development between the state and European markets." The center will also operate satellites in London and Berlin in order to further its mission on behalf of small- and medium-sized businesses based in Michigan, of which we can expect many will come from the automotive sector. Gov. Snyder in Germany: Daimler North America moving headquarters to Michigan State opens Michigan Europe Center to promote trade and investment Wednesday, Sept. 16, 2015 FRANKFURT – Daimler North America Corporation, the holding company for all of the company's business units in the United States, will move its headquarters to Michigan from New Jersey, Gov. Rick Snyder announced as he completed an investment mission trip to Japan and Germany. "Michigan is the world's automotive leader, and Daimler's decision to increase its presence in state is another indication that we intend to hold that position for generations to come," Snyder said.