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Mercedes invests $1.3 billion to expand Alabama factory

Mercedes-Benz announced a $1.3-billion investment Friday in its Tuscaloosa, AL, factory to increase SUV production capacity. The move comes on the heels of Autoblog's exclusive report that the GLC Coupe Concept will enter production as the German luxury marque continues to push for increased SUV sales. The investment will add 300 jobs to the approximately 3,500-strong workforce. The facility will be responsible for what Mercedes calls "the next SUV generations," which makes it sound like the plant will continue to assemble the GLE-Class and GL-Class SUVs, as well as the C-Class sedan. The next-gen SUVs built in Alabama will include hybrid variants, Mercedes said. Upgrades to the sprawling 5-million-square-foot facility include a new 1.3-million-square-foot body shop that will implement modular construction techniques. As for the current body shop, it will be expanded by nearly 140,000 square feet and will receive a larger "marriage" station, for pairing bodies and powertrains. Finally, the entire facility will receive a major IT upgrade. "In the next years we invest $1.3 billion in the expansion of our SUV production and turn the Mercedes-Benz plant Tuscaloosa into a high-tech location," Mercedes' Markus Schafer said in the attached release. "In this way we can produce the next SUV generations even more flexibly, efficiently and in proven top quality." If you're interested in the nitty gritty particulars of the announcement, you can read all about them in the official press release. Mercedes-Benz Tuscaloosa Plant: Mercedes-Benz invests $1.3 Billion in the expansion of its SUV production Tuscaloosa, Alabama, USA / Stuttgart, Germany, Sep 18, 2015 MBUSI (Mercedes-Benz U.S. International, Inc.) to produce future SUV generations including hybrid versions SUV production to be expanded – 300 new jobs New Body Shop, major enhancements to SUV Assembly Shop and upgraded logistics and IT systems Implementation of state-of-the-art technologies and end-to-end digitization of production processes in line with the smart factory approach Markus Schafer, Member of the Divisional Board Mercedes-Benz Cars, Manufacturing and Supply Chain Management: "In the next years we invest $1.3 billion in the expansion of our SUV production and turn the Mercedes-Benz plant Tuscaloosa into a high-tech location.

Smart brand might be doomed

Reports are painting a less than rosy picture of the Smart brand's future. The Daimler-owned carmaker is going fully electric in 2020, but that might not be enough to keep it alive for long. Inside sources, quoted by Automobile Magazine, are saying Renault is likely to pull out of the partnership that created the current Smart ForTwo/Renault Twingo pairing introduced in 2014. The two rear-engined cars share a platform, and when the current Twingo is done for, Renault might want to part ways. In addition, Mercedes isn't willing to prop up Smart on its own, and there is a possibility that the entire Smart brand could be shuttered by 2026. A previous joint venture was the ForFour hatch co-developed with Mitsubishi, and despite the ForFour name living on in the current generation rear-engined car, the earlier FWD hatchback has quickly been forgotten. Not long ago, Smart presented its Forease open-top concept to give customers a glimpse of what future Smart cars would look like, but at its heart the Forease was still a current Smart dressed up with concept car details. The next-generation Mercedes-Benz A-Class is to be signed off in 2021 for a 2025 introduction, and it can be underpinned by a more flexible, fully scalable platform that could also serve to support a new entry-level Mercedes-Benz vehicle that could render the separate Smart brand pointless. Then there's Geely, who now owns nearly 10 percent of Daimler, and who is partnering with Daimler to launch a new "premium" ride-hailing venture in China. As Geely develops its mobility solutions, it is likely to keep an eye on Smart: Smart cars have been car-sharing staples around the world for quite a while, from users such as Car2Go. Automobile Magazine says that if a Smart is co-developed with Geely, it might suit the Chinese market well, but a global business case might be challenging. In any case, if Smart wants to survive beyond the current Renault partnership, the new model should be agreed upon quickly, and it must be based on a platform flexible enough to support full electric drive. Reportedly, there are now ongoing feasibility studies for a fully electric Daimler "U-Class," which would include a Smart-like three or five-door hatch with two wheelbase options, a ride-sharing shuttle with autonomous capabilities, and an urban delivery panel van. But Smart must justify itself for the upcoming decades, or the future Daimler products that occupy its niche will be wearing a three-pointed star instead.

Tesla says Model 3 is best-selling midsize premium sedan in America

Auto sales figures are sort of fuzzy numbers, no matter how you slice them and no matter which manufacturer you're talking about. Unless you're specifically tracking vehicle registrations, automakers generally self-report the figures. So, you have to trust that they aren't doing anything too tricky. Plus, not every sale is equal, as some are logged as dealership loaners or demo models, some go to fleets (like to a rental car agency), and still others are, of course, bought by traditional customers looking for a new daily driver. With that preamble out of the way, when we saw a tweet from Tesla claiming that the all-electric Model 3 is the best-selling midsize premium sedan in America, our interest was piqued. According to Tesla, market share of the Model 3 has just surpassed the Mercedes-Benz C-Class, which had up until now led the Audi A4, BMW 3 Series, and Lexus IS as the best-selling sedan in its class. Note that the graph from Tesla below is, we think, specific to four-door models. So, is it true? Judging by the numbers we can find, including some from Bloomberg, which has a running chart to track Model 3 registrations, the answer is... probably. We don't know exactly how many Model 3 sedans Tesla is currently cranking out, but Bloomberg estimates production at about 2,560 units per week, and total sales for 2018 at 34,414. We know the number is increasing regularly, though, and Elon Musk has said most recently production sits around 500 units per day, which, on a seven-day cycle, would be 3,500 per week. We looked up Mercedes' sales figures for the month of May, 2018, and found that the German brand sold 5,419 C-Class models last month, for a total of 23,917 for the year (incidentally, that's down more than 30 percent from the year prior). While the bulk of those sales would surely be made up of sedans, it would also include a small percentage of coupes. Either way, it's likely that Tesla is currently producing and selling more Model 3s than Mercedes is C-Classes. Now, it's also worth considering if the C-Class is the only vehicle from Mercedes that directly competes with the Model 3. We'd guess customers may also cross-shop the CLA sedan with the Tesla, and if that's the case, you might decide it's worth adding in Mercedes' 2,527 CLA-Class sales last month and 9,622 so far for the year. The same argument could be made for certain versions of the BMW 2 and 4 Series.