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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.

Automakers' sound systems: Crank it, don't yank it

Years ago, one of the first things most music lovers did after buying a new vehicle was drive to an aftermarket stereo shop to get the crappy stock components swapped for better gear. And you'd typically get not only better sound but also more bang (and boom) for your buck. But in the past decade or so, the overall quality of OEM audio has dramatically increased, while car electronics became more complex, removing the incentive for most new vehicle owners — and all but the most hardcore DIYer — to start from scratch. In 2010, I did a comparison of the average costs for OEM electronics vs. similar offerings from the aftermarket, and back then automakers' stock premium systems were by far the best bargain — and are probably an even better value now. The premium 14-speaker, 1,200-watt JBL system in the all-new 2019 Toyota Avalon is a prime example of this trend. It's standard on the top two Limited and Touring trims and is available as a $680 audio upgrade on the XLE and XSE. I doubt you can even buy 14 speakers and 1,200 watts of amplification from the aftermarket for 700 bucks, much less have it all installed. And because the system is bundled with Toyota's Entune infotainment system, Apple CarPlay and a surround-view camera, removing the head unit means you would likely lose these features. Another advantage of OEMs and their audio partners is they can design the car around the audio system. In the past, automakers would typically place speakers where convenient for packaging, not for optimal sound reproduction, and audio engineers were forced to compromise. But as with the Avalon's premium JBL audio system, this is starting to change. At a recent behind-the-scenes peek for media into the process of developing the system, Toyota and Harman engineers delved into the minutia of sealing the inner panel of the front doors to create an enclosure for 6x8-inch woofers, making space in the pillars for JBL horn tweeters and extensively measuring the acoustic properties of the interior to tune the sound to the space. I'm met some creative and skilled car stereo installers, but none with a degree in psychoacoustics. The system is also the first to feature Quantum Logic Surround that creates a multi-channel listening experience from two-channel sources. And it includes Harman's Clari-Fi processing that "rebuilds key details lost" in compressed audio formats used by streaming music services and MP3s.

McLaren F1 boss says team will dethrone Mercedes

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