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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-Benz C-Class 'bleeding seat' problem resurfaces [UPDATE]

UPDATE: We received the following statement from Mercedes-Benz: "In rare instances, we incorrectly ordered some of the replacement parts for the seating surfaces. The approved replacement parts will not demonstrate the previous symptoms." It appears Mercedes-Benz has another problem with "bleeding seats" in 2015 C-Class sedans. As we reported in January, an oily residue has been appearing on some versions of the C-Class with man-made MB Tex upholstery, making it look as though the seats were grimy or "bleeding." Mercedes issued a technical service bulletin to its dealers to remedy the problem, but now we're hearing the fix isn't complete. Small parts of the seats – the rear bolsters and a piece below the center armrest – weren't replaced during service and then developed the oily reside again, a source tells us. This occurred within a few days of their service appointment. The dealer followed Mercedes' instructions, our source said, and their C-Class appears to have been one of the first cars fixed. "I'm absolutely flabbergasted at this point ... The new C-Class is such a good car. This is just a shame," they told Autoblog. The bleeding seat issue appears to affect US-built C-Class models with the MB Tex vinyl and possibly other interiors. The bleeding often occurs when a car has been sitting in the cold and then heats up quickly. The number of cars affected is unclear, though the C-Class owners have been vocal in the MBWorld.org forum. At the time of our original report, Daimler AG, parent of Mercedes-Benz USA, said it was aware of the issue and that no injuries had been reported. The residue usually washes off with soap and water. The National Highway Traffic Safety Administration had no recalls, complaints or investigations recorded about the issue as of Wednesday. The fix at the dealer involves changing out the headrest and seat covers, except for a part of the passenger seat that needs to be calibrated by the factory, according to the bulletin. The C-Class is a critical car for Mercedes as it battles BMW, Lexus and others for supremacy in the ultra-competitive luxury segment. The C-Class, which launched last fall, is moving upmarket as Mercedes reshuffles its lineup with the addition of the CLA sedan. The C-Class was the company's best-selling model in January with volume of 6,236 units.

Daimler opens the door on Car2go Black with B-Class carsharing

Mercedes-Benz parent Daimler has finally decided to go to its proverbial mothership to further expand its Car2go carsharing service in Europe. The German automaker has long used its itty-bitty Smart Fortwo vehicles for the program, but now it's kicking off a pilot program called Car2go Black that will share Mercedes-Benz B-Class models in Berlin and Hamburg. Daimler will deploy 100 B-Class diesels in each German city. The company says the cars will be parked at so-called "black" parking spots and won't have to be returned to the same spot when the user is done. Daimler, who says the reservation platform is geared for smartphone use, is planning to expand the program to other European cities with existing Car2go service starting this spring. That's important, since once the system is up an running, you will be able to drive a Car2go Black vehicle from one town in the network to another and not need to bring it back. Car2go first started operations in Ulm, Germany, and made its North American debut in Austin, TX, in 2009. The service now has more than 600,000 members worldwide with access to about 10,000 Fortwos in 25 cities throughout Europe and North America. Car2go chief marketing officer J. Paul DeLong said last month that Car2go is the world's largest global carsharing company. You can check out Daimler's Car2go Black press release below. car2go black: Carsharing with the three-pointed star STUTTGART, Germany, Feb. 4, 2014 /PRNewswire/ -- Daimler Mobility Services offers carsharing with Mercedes-Benz vehicles for the first time Pilot Phase with 200 B-Class vehicles starts in mid- February in Hamburg and Berlin One-way trips and open-ended trips available, within and even between different cities Smartphone-based rental procedure makes usage both easy and flexible Daimler Mobility Services will soon be offering carsharing with the three-pointed star. Under the "car2go black" brand, Daimler Mobility Services GmbH will pilot a fully automated carsharing system with Mercedes-Benz vehicles. The pilot phase will begin in mid-February in Hamburg and Berlin. In the initial pilot phase, select car2go members in those locations can use a network of 200 black B-Class models on short notice. The vehicles can be rented at dedicated reserved parking stations, and do not have to be returned to the same dedicated parking station that the vehicle rental originated from.