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Mercedes calls CLA 'best launch in 20 years' as it warns dealers of tight supplies

It's still in the early going, but it's looking more and more like the 2014 Mercedes-Benz CLA is a verifiable home run for the German brand. According to a new report from Bloomberg, the new small car isn't just widening the sales gap between Mercedes and BMW, it's attracting a new, younger breed of customers into the brand's showrooms. But that early success is straining supplies of the turbocharged four-door.
Dealers have been warned that the first half of 2014 will see limited supplies for CLA, with a letter to dealers indicating that "tight inventories and low days supply" will exist from February through June, despite the car's Kecskemét, Hungary plant running at full tilt.
"This is our best launch in 20 years," said Steve Cannon, the US boss for Mercedes. "The CLA has been a phenomenal success right out of the gate." The numbers certainly support that. We reported in early October that Mercedes moved 2,300 CLAs in its first week on sale, and now Bloomberg is saying CLA sales were almost singlehandedly responsible for Benz's November sales gains. Mercedes' annual sales are up 14 percent through the November, and it's enjoying a healthy 7,600-car lead over BMW.

Formula One's Valtteri Bottas can turn it up to 11 in Spain

BARCELONA - Valtteri Bottas can add his name to one of Formula One's longest sequences by following up his breakthrough win in Russia with another triumph when the European season starts in Spain this weekend. The Finn, fresh from his first Grand Prix victory with champions Mercedes in Russia, is the man most likely to become the 11th different winner in a row at Barcelona's Circuit de Catalunya. No other track on the calendar has had such a variety of winners over the past decade, an ironic fact given that it is the most familiar to drivers from winter testing and was once famed for its predictability. Last year it was Dutch 18-year-old Max Verstappen who became the sport's youngest winner when he triumphed for Red Bull, on his team debut, after both Mercedes drivers collided at the start. In 2012, it was now-departed Venezuelan Pastor Maldonado -- a one-hit wonder -- who handed Williams a surprise victory that remains their most recent. Ferrari's championship leader Sebastian Vettel and Mercedes rival Lewis Hamilton, 13 points behind the German, will start as favorites and success for either could be an omen given that both went on to take the title last time they won in Spain. But Bottas, who joined Mercedes from Williams in January as replacement for retired 2016 world champion Nico Rosberg, is the best bet to continue the streak of different winners in Spain even if he has yet to finish higher than fourth there. "Getting that first win definitely gives me a lot of confidence that I can do it, even though I always knew I had the ability," he said after Sochi. "And now it's done, I just want to do it again and again." RICCIARDO REVIVAL The only other driver from the leading trio of teams yet to triumph in Barcelona is Verstappen's Australian team mate Daniel Ricciardo, but the Red Bull has lagged Mercedes and Ferrari on pace so far this year. That will surely change, with the flow of upgrades set to speed up now that teams are closer to their factories, and Red Bull have some big chassis modifications in the pipeline with engine improvements still to come. "I hope the upgrade will give us a chance to really fight with Mercedes and Ferrari or at least get us closer," said Ricciardo. The driver of car number 11, Force India's Mexican Sergio Perez, has racked up 14 successive points finishes and he too will have aerodynamic updates on his car.

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.