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Mercedes moves R-Class production to AM General in Indiana

Go back a decade or two and you'd have seen the SUV market polarizing in opposite directions: hard-core off-roaders like the Hummer on the one hand, and passenger-focused crossovers like the Mercedes R-Class on the other. Now their fates are set to intertwine, at least as far as manufacturing is concerned. No longer producing Hummers, AM General (which designed and originally produced the Hummer) has been assigned the task of manufacturing the R-Class at its underused, 675,000 square-foot Commercial Assembly Plant in Mishawaka, IN – part of metropolitan South Bend. The decision was undertaken to allow Mercedes to free up production capacity at its plant in Tuscaloosa, AL, where it also produces the M-Class, GL-Class and C-Class, and where it will soon begin manufacturing the GLE Coupe. The vacation of the R-Class assembly line could be earmarked to make room for that new slant-roofed crossover (which was originally thought to be joining the Tuscaloosa plant as a fifth model) or could pave the way for another model to reach Alabama altogether. The multi-year arrangement to manufacture the R-Class makes AM General the first manufacturer contracted to build Mercedes-Benz vehicles in the US, but hardly the only one in the world. The G-Class – which could, incidentally, be characterized as the German equivalent of the Hummer – is built on Mercedes' behalf by Magna Steyr in Austria, and the company builds many of its passenger and commercial vehicles for local consumption under joint ventures in the Far East especially. The R-Class was first introduced in 2005, and though it's still built in America, it was removed from the company's US lineup back in 2012. However Mercedes confirms that, since 2013, it has been and remains available exclusively in China. That puts the R-Class in the rare position of being manufactured in the United States by (or now for) a foreign automaker but unavailable for sale here. AM General Selected As Mercedes-Benz First and Only Contract Manufacturer of Vehicles in the United States SOUTH BEND, Ind., Jan. 27, 2015 /PRNewswire/ -- AM General LLC and Mercedes-Benz U.S. International, Inc., today announced that Mercedes-Benz has selected AM General to manufacture the Mercedes-Benz R-Class luxury vehicle at AM General's world-class 675,000 square-foot Commercial Assembly Plant.

Daimler wants to cut EV research spending as it preps EQ

Daimler AG is hoping that the legwork it's done preparing its EQ electric-vehicle sub-brand will allow it to slightly reduce annual spending on plug-in vehicle technology. The Mercedes-Benz parent is looking to cut electric-vehicle research-and-development spending to $13.2 billion in 2017 from about $15.4 billion this year, Bloomberg News says, citing comments Daimler CEO Dieter Zetsche made to journalists in Hamburg, Germany, this week. Daimler's annual R&D spending is up from about $11.5 billion in both 2013 and 2014. Like its competitors – for example Audi and BMW and its i sub-brand – Daimler is aiming to have as much as 25 percent of its annual vehicle sales be battery-electric within the next 10 years as part of an effort to meet stricter greenhouse-gas emissions mandates in both Europe and North America. In fact, Mercedes-Benz and Daimler's Smart division collectively have at least 10 electric-vehicle models on their slates during the next few years, though Zetsche said the German automaker will continue to find ways to make its gas- and diesel-powered vehicles more fuel-efficient as well. Daimler introduced a concept version of the Generation EQ electric SUV at the Paris Motor Show late last month. It comes powered by two electric motors and is made up of a combination of steel, aluminum, and carbon fiber, and boasts a 311-mile single-charge range (on the relatively lenient European testing standards). The SUV also has 402 horsepower, and the ability to go from 0 to 60 miles per hour in less than five seconds. Zetsche said at the time that Daimler was prepping powertrains and platforms for electric sedans, wagons, coupes, and roadsters, in addition to SUVs. Additionally, Daimler's Deutsche Accumotive unit is producing the lithium-ion battery packs for the EQs. Featured Gallery Mercedes-Benz Generation EQ Concept: Paris 2016 View 19 Photos News Source: Bloomberg News via Automotive News-sub.req. Green Mercedes-Benz smart Electric eq mercedes eq

Mercedes mulling Renault-based entry-level X-Class?

Somewhere in between the Smart brand and the all-new A-Class (pictured above), Daimler is said to be readying a smaller entry-level product for the Mercedes-Benz brand to compete with models like the Audi A1. According to AutoBild, Mercedes-Benz will get a new hatchback based on a platform from its recent partnership with Renault-Nissan, and it could be called the X-Class.
Expected to debut by 2018, the Mercedes-Benz X-Class could be offered in sedan, hatchback and crossover variants, and it would likely have a starting price below the $20,000-euro mark. Power would come from either a 1.0-liter inline three-cylinder engine or a 1.5-liter inline-four, and the car would likely be built in a low-cost nation in order to make the financials work. Wearing the Mercedes-Benz name, the X-Class would have to exhibit more distinguishable luxury and styling to set itself apart from the models that helped provide its underpinnings.