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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.

2016 Mercedes-Benz Metris First Drive

We're sitting 8,700 feet above sea level in the idyllic old mining town of Dunton Hot Springs, nestled deep in the Rocky Mountains of Colorado. We've come to drive the newest and cheapest Mercedes-Benz, a midsize work van called the Metris. As the day begins, Mercedes van boss Bernhard Glaser states the obvious, "We're setting up camp in the US." It's a good line, perhaps a little too fitting given our surroundings, but it's accurate. Though the US commercial van market is dominated by Ford and General Motors, Mercedes has staked out a competitive position and is digging for more. The tall, capable Sprinter relaunched with a Mercedes badge in the United States in 2010 and has grown into a $1-billion enterprise in America. Now comes Phase 2, dubbed "Mission Metris," starring a tweener van that's smaller than the towering Sprinter yet larger the Ford Transit Connect and Nissan NV200. The 2016 Metris enters a crowded and evolving segment that also includes the Ram ProMaster City and GM's super-old Chevy Express and GMC Savana. Mercedes will sell the Metris in cargo and passenger forms, meaning it will be outfitted for a range of roles, including taxi and limousine companies, delivery duties, service, and maintenance. Yes, your cable guy might show up in a Mercedes. That's part of the plan, actually. Though the Metris was engineered to be a pack-mule of a van, if the shine of the star on its grille helps attract new buyers – like a chain of upscale hotels that needs a fleet of shuttles – all the better. Our short test drive begins outside the small canyon town of Dolores, CO, as we haul four people and some luggage to the airport in a pre-production Metris. Normally test programs staged by automakers are a little contrived – many feature an off-road course or track time for even the most mundane vehicles – but our stint behind the wheel of the Metris is almost exactly how the van could be used in real life. We make our way along Colorado's winding highways, cruising around 60 miles per hour for much of it. The Metris offers an excellent view of the road and the snow-capped mountains that rise in the distance. It's an easy van to drive. We don't feel like we're piloting a U-Haul or something else cumbersome. Mercedes is billing this as the 'right-sized' option, and our initial impressions support that sentiment as we navigate the curves flanked by steep drop-offs.

Mercedes-Benz USA confirms relocation to Atlanta

Porsche, you no longer have Atlanta to yourself. Mercedes-Benz USA has confirmed that it will be moving its corporate headquarters (shown above) from Montvale, NJ, to Georgia's most populous city. This is the second high-profile corporate relocation in the past year, as Mercedes follows in the footsteps of Toyota, which announced its relocation from California to Texas back in April (Subaru also announced a relocation, but it was just four miles away from its old offices). According to the German company, executives and their staff will relocate to an interim facility in the city's Central Perimeter until a brand-new, long-term home is completed in 2017. Around 1,000 employees will be impacted by the move, although Mercedes didn't mention if any employees would be let go as a result of the relocation. The company won't be abandoning New Jersey completely, as it will retain "several operational areas" in both Montvale and Robbinsville, NJ. As Mercedes USA CEO Steve Cannon explains, there are a number of good reasons for the company's relocation. "Atlanta is a premier city which places us closer to our ever-growing Southeast customer base, our port in Brunswick, Georgia, and to Mercedes-Benz US International, our Alabama manufacturing facility, which accounts for half of the vehicles we sell here in the US," Cannon said in a statement. "For our employees, Atlanta offers a strong quality of life, terrific schools and wonderful cultural and recreational opportunities." Mercedes-Benz USA Announces Move of Corporate Headquarters to Atlanta Several operational areas to remain in New Jersey including Parts Distribution Center and Regional Office January 06, 2015 - MONTVALE, N.J. Mercedes-Benz USA (MBUSA) today announced that it will relocate its corporate headquarters to Atlanta, Georgia, in a move designed to better serve its growing customer base and strengthen the company's position for long-term, sustainable growth. MBUSA executives and staff will relocate from its primary facility in Montvale, New Jersey, to a temporary facility in Atlanta's Central Perimeter on an interim basis. The company will construct a new, state-of-the-art headquarters expected to be completed in early 2017. MBUSA plans to begin moving employees starting in July 2015. The move, which will affect approximately 1,000 employees, will be phased to help minimize any disruption to business operations. Several operational areas will remain in both Montvale and Robbinsville, New Jersey.