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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.

2015 Volkswagen Touran is the Euro MPV exemplified [w/video]

Among the vehicles Volkswagen doesn't sell in the United States, we retain a soft spot for the tiny Touran MPV. Five doors, a reasonably sized trunk, clean sheet metal and an attractive cabin is an appealing combo, after all, regardless of the form factor. For the 2015 Geneva Motor Show, VW updated the popular compact van for European audiences. Like the Golf-inspired styling of the second-generation model, the popular hatchback's looks are clearly evident in the third-generation Touran. The Golf's small upper character line is more dramatic on the van, although the general taillight and headlight shapes are remarkably similar. The grille, meanwhile, is more Passat than anything else, with a conservative three-bar design. The R-Line model gets more dramatic front and rear bumpers, with black accents on the former and a pair of chromed exhaust tips jutting out underneath the latter. The cabin is typical of Volkswagen, with handsome materials throughout. Piano black is the dominant accent material, found on the dash and steering wheel, while the leather-wrapped steering wheel and hide seats both look like nice enough. Check out our full gallery of images of the new, third-generation Touran from the 2015 Geneva Motor Show. Volkswagen presents the new Touran - Germany's best-selling MPV completely redeveloped - More room; smart new design - New engines up to 19 per cent more economical Volkswagen presents the new Touran. The completely redesigned MPV was showcased before an audience of international media representatives at the Autostadt in Wolfsburg, not far from the production site where the popular family car is made. The interior of the new model has undergone a significant increase in size and is highly configurable. Refinements have been made all around the vehicle, which boasts a range of six new economical engines and an extensive line-up of assistance and infotainment systems. The public premiere of the new Touran will take place in the coming week at the Geneva motor show. Prof. Dr. Martin Winterkorn, Chairman of the Board of Management of Volkswagen Aktiengesellschaft, explained: "As one of the most successful family cars in the world with 1.9 million units sold, the Touran is indisputably Germany's top MPV.

Volkswagen throws a Polo-palooza with four new or upgraded models

Volkswagen unveiled a parade of new and upgraded Polo models at the 2014 Geneva Motor Show, including the Polo TSI BlueMotion, Polo TDI BlueMotion, Polo BlueGT and CrossPolo (pictured above). While they will likely never make an appearance this side of the pond, it is fun to see what European subcompact drivers will be driving later this year.
The new BlueMotion models represent the most efficient petrol and diesel options in their class, according to VW. The BlueMotion TDI offers just 73 horsepower from its diesel engine but gives the equivalent of 76 miles per gallon (US) in the EU test. The BlueMotion TSI brings a little more power with its 88-hp petrol engine and has a combined rating of 57 mpg (US) in the EU cycle.
The Polo BlueGT provides a balance of performance and economy, and for the 2014 model, it gains a 9-horsepower boost to its 1.4-liter turbocharged to give drivers 147 hp at the press of the accelerator. This year's car also has an optional Sport Select suspension with electronically controlled dampers to improve handling a bit. It's still fitted with active cylinder management to use as little gas as possible when cruising.