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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.

Mercedes-AMG once again joins forces with Cigarette Racing

Any time there's a new loins-quaking Mercedes-AMG introduced, you need to keep your eye on the aquatic horizon around the time of the Miami International Boat Show for the Cigarette tie-in to come roaring into port. The SLS AMG had its 2,700-horsepower, 46-foot Rider, the C63 AMG Black Series got a 1,350-hp, 50-foot Marauder, the G63 AMG got a 1,750-hp, 43-foot Huntress, and the SLS AMG E-Cell got a matching wild yellow 2,200-hp, 38-foot electric concept boat. Now that we're in 2015 with another AMG and another boat show, we have another Cigarette. Mercedes hasn't dropped the goods on this one yet, but it will be twins with the AMG GT. After that, we're guessing it will have a can't-miss-it paint job, be in the 40-foot range, and have something like 2,000 hp. The show is February 12-16, we'll have all the info for you then. Featured Gallery Mercedes-AMG and Cigarette Racing Auto News Mercedes-Benz Coupe Luxury Performance mercedes-amg mercedes-amg gt

Mercedes-Benz starts internship program for refugees

Mercedes-Benz has started a new internship program for refugees in Germany, which offers participants work training and German language lessons over the course of fourteen weeks. Its aim is to help refugees and asylum seekers integrate into the German workforce, but not necessarily at the automaker. The "bridge intern" program is a joint effort between Daimler and the German government's Federal Employment Agency. It starts each day on the early shift at 6:00 a.m. with three and a half hours of work in areas like axle production and logistics. That's followed by another three and a half hours of language courses where they learn to converse in German in 10-person groups, which includes help with writing letters for job applications and other critical employment skills. Germany has been flooded recently with refugees and asylum seekers. Many of them have been coming in from the war zone in Syria. However the program also welcomes refugees from other Central Asian and African countries, including Afghanistan, Eritrea, Gambia, Nigeria, and Pakistan. The program is open to participants between the ages of 20 and 51. "The best way for people to integrate is at the workplace," said Michael Brecht, chairman of Daimler's General Works Council. "Doing things together creates understanding for one another. That is why we are delighted that many colleagues have expressed a willingness to mentor the 'bridge interns'." In the statement below, Brecht stresses that the internship participants "are not in competition with temporary agency workers or our core workforce. This program does not put anybody at a disadvantage." The first six weeks of the program are financed by the Federal Employment Agency, but after that, Daimler foots the bull for another eight weeks, paying the interns the standard minimum wage. The first such program has already started at the Unterurkheim plant in Stuttgart, and is set to be followed by other similar programs at additional locations. 40 refugees start 'bridge internships' at Daimler Stuttgart, Nov 09, 2015 - Participants from Afghanistan, Eritrea, Gambia, Nigeria, Pakistan and Syria - Fourteen-week internship in cooperation with the German Federal Employment Agency - Daimler qualifies refugees for the German labor market - Internships for several hundred more refugees are planned at other company locations Forty refugees and asylum seekers have started a so-called 'bridge internship' at Daimler.