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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.

VW to announce $1B investment in Mexico plant

Big news south of the border could be slated for later this week, as Automotive News is reporting that the Volkswagen Group will announce a $1-billion investment in the company's Puebla factory. The company officially declined to comment, but AN is claiming the investment in the Puebla facility, which has been operating for over five decades, will add 1,900 jobs to the nearly 16,000-strong workforce. According to AN, a person familiar with the situation in Puebla claims the investment will support production of the next-generation Tiguan, slated to arrive in 2017. The Puebla factory currently produces Golf, while total output last year nearly hit half a million vehicles, or about 15 percent of Mexico's total automotive output. News Source: Automotive News - sub. req.Image Credit: Susana Gonzalez / Newsmakers/ Getty Plants/Manufacturing Volkswagen Mexico vw tiguan puebla

Some intriguing showstoppers from Auto China 2024

“Electric” may be the most appropriate word to describe the atmosphere at the recent Beijing motor show, now considered to be one of the worldÂ’s largest automobile exhibitions. ChinaÂ’s vision of the electric mobility future is on full display during the ten-day event, which ends this weekend. Organizers estimated that 117 new global and China-domestic models would debut in Beijing. In fact, about 30 foreign brands had stands, a turnout that hasnÂ’t been seen at auto shows since before the pandemic. The South Koreans and the Japanese came, and from Germany, representatives making the case for their brands included CEO Oliver Blume of Volkswagen Group, Oliver Zipse of BMW Group and Ola Kallenius of Mercedes-Benz Group. A few of the models would be powered by gasoline—by ICE, or internal combustion engines—but the vibe was clear: electrics are it. According to to show officials, Beijing hosted a total of 278 electric and plug-in hybrid models on display. After digesting most of the reveals unveiled during the show, weÂ’ve parsed a list to a select few of the more interesting models. Here it is, in no particular order: BYD Ocean-M concept BYD has launched off-roaders, SUVs and sedans in its global assault on the car market — and added a hot hatch concept at Auto China. The Ocean-M (above) is a Volkswagen Golf-sized five-door hatchback, meaning itÂ’s likely that BYD will pitch it as a rival for the Volkswagen ID.3 GTX. The show car has sporty design, rises sharply towards the rear window, and sharp surfacing at the front and along the flanks. The show car has a huge rear wing, aero diffuser and side blades.   Denza Z9GT BYDÂ’s luxury brand, Denza, a joint venture between BYD and Mercedes-Benz, showed the Z9 GT, a massive wagon carrying three electric motors putting out a stunning 952 horsepower. The EV weighs an extraordinary 6,338 pounds, almost 440 pounds more than a Rolls-Royce Cullinan. BYD's design boss is a German -- Wolfgang Egger, who previously worked for Alfa Romeo and Audi. Lamborghini Urus SE The Volkswagen subsidiary brought a bit of Italian sex appeal to Beijing in the form of “super” luxury SUV that received its first public premiere in China. The plug-in hybrid Uris SE SUV gets nearly 800 horsepower as well as a series of visual and technology updates inside and out.