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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.

Performance cars old and new are headed to auction at Las Vegas Grand Prix

Auction house RM Sotheby's is hosting a sale ahead of the 2023 Las Vegas Formula One Grand Prix, and most of the lots that will cross the block were designed with performance in mind. Whether you want a supercar or a Formula One car, there's a chance you'll find it in Sin City. One of the highlights from the sale in terms of rarity and price is the Mercedes-AMG Petronas W04 that Lewis Hamilton drove in the 2013 F1 season. Assigned chassis number F1W04-04, it's the team's last car powered by a naturally-aspirated V8 engine, and you're on the wrong track if you're thinking of the 4.0-liter unit that powers AMG's road cars. The engine in question is a 2.4-liter unit that develops 750 horsepower and is capable of revving to a screaming 18,000 rpm. The KERS system injects 80 additional horses into the driveline. Hamilton drove F1W04-04 in 14 of the 2013 season's 19 races, and he won that year's Hungarian Grand Prix in the car. RM Sotheby's notes that F1W04-04 is "the sole example to be sold outside of the Mercedes-Benz organization," which explains why it expects the car will sell for anywhere between $10 million and $15 million excluding the buyer's fee and a 2.5% import duty that applies to American residents. That's a lot of money, but modern Formula One cars rarely come up for sale. Several other cars are expected to sell above the $1 million mark, including a 1999 Mercedes-Benz CLK GTR ($8 million to $9 million), a 1988 Porsche 959 Komfort ($1,650,000 to $1,850,000), and a 1996 Bugatti EB110 Super Sport ($2,500,000 to $3,250,000). The 1990 Ferrari F40 GT (one of 21 units built) could bring up to $4 million. You can take home a rare, high-end classic even if you cap your budget at $1 million. How about a 1984 Lamborghini Countach 5000 S that was delivered new to Ralph Lauren and that has been in the hands of its second owner since 1986? RM expects the coupe will sell for up to $900,000. The auction house is also giving enthusiasts two distinctly different ways to spend a six-digit sum on a 30-something-year-old Mercedes-Benz. There's a 1990 190E 2.5-16 Evolution with about 3,400 original miles that could fetch up to $700,000. That's a lot to pay for a W201, but this isn't a run-of-the-mill Baby Benz: It's one of 502 examples built for homologation purposes. Alternatively, the 1989 560SEC AMG 6.0 Wide-Body could sell for up to $900,000. It's one of the most emblematic cars designed by AMG before it joined Mercedes-Benz.

2014 Mercedes B-Class ED battery much bigger than previously stated

There was something unexpected hiding in the new configurator for the 2014 Mercedes-Benz B-Class Electric Drive: a $600 "Temporary range extender." Since we've never heard of such a thing, we had to click through for more. The official explanation runs like this: A suite of options to further increase your driving range includes added insulation of the doors and roof for to increase climate-control efficiency, along with an electrically heated windshield and a range-extending charge function. By pressing a button on the console prior to charging, the maximum charge level for battery will increased for the next charge cycle. The higher-capacity charge can provide up to 17 additional miles of range. The passive features that increase range should be standard in all models, we think. But we were more curious about the battery charge situation. How do you increase a maximum? And is it a good idea to do so? The configurator includes this disclaimer, after all: Range extender should only be used on a limited basis, and could shorten battery life if used excessively. How much is excessive? We investigate below. The B-Class ED has, according to the specs, a 28-kWh battery. First, let's understand what this "temporary range extender" is all about. The B-Class ED has, according to the specs, a 28-kWh battery. But Terry Wei, from the Mercedes-Benz USA product and technology communications department, confirmed to AutoblogGreen that the B-Class ED is actually hiding a 36-kWh battery, but the automaker is calling it a 28-kWh battery because that's how much energy capacity is used in day-to-day use. Most automakers publicly claim the actual capacity and then admit they use a percentage of it. The Chevy Volt, for example, has a 16.5-kWh battery pack, but a "full charge" only fills up around 65 percent of that. In the B-Class ED, the 28 kWh of useable energy provides an EPA-certified 87 miles of range. But, since there are eight kWh of reserve, the temporary range extender (we think of it as a software update accessed by a button) can access some of that and offer the aforementioned 17 miles. Now that we know what we're dealing with, this reminds us of an evolved version of the "remote wireless charging" feature that was touted in the Reva EV. Wei said that the reason the feature is optional is because Mercedes doesn't think most people will need it. Eighty-seven miles is plenty for your average EV driver, but when you want to have 100+ in the tank, you can.