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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.

Volkswagen planning Up! hybrid model using XL1 powertrain

Even though we've finally gotten a look at the production version of the 261-mile per gallon Volkswagen XL1, this aero-shaped two-seater was never intended for high-volume sales. Fortunately, it sounds like the same isn't true for the car's diesel plug-in hybrid powertrain, which, according to a report from AutoCar, could make its way under the hood of another Volkswagen model: the Up! minicar (shown above).
A potential Up! Hybrid would likely be able to return some of the same impressive fuel economy numbers as the XL1, but it would be a more realistic car with more passenger space and greater production capacity. The hand-built XL1 will use a 47-horsepower, two-cylinder TDI engine paired to a seven-speed dual-clutch transmission, and the 27-hp electric motor and lithium-ion battery helps deliver an all-electric driving range of 31 miles.
One of the core pillars of the XL1's design is its lightweight construction with a 1752-pound curb weight, which makes the Up! a perfect recipient for using this powertrain since it weighs just 300 pounds more. The report says that the Up! Hybrid is still in the developmental phase, so a production version isn't expected for at least another 18 months.

Recharge Wrap Up: VW's Last Mile Surfer, Apple's BMW i3

Volkswagen has unveiled its Last Mile Surfer. This little electric scooter – it folds up small enough to fit in the trunk and weighs just 24 pounds – will go on sale next year for around 1,000 euros ($1,100 US), according to VW chairman Martin Winterkorn, as reported by Autocar. Of course, we're wondering why you'd need to pay that much money to avoid walking a mile, but maybe we just haven't walked that far in an interested buyer's shoes. See more at Autocar. Did Apple want to use the BMW i3 as the basis for its own electric car? That's the word from the German magazine Manager, which says that Apple and BMW were talking about using the i3 shell for the plug-in iCar (or whatever) started last fall but are no longer actively taking place, but the two organizations have not totally closed off communication. Read more at Manager or at Green Car Reports. BMW is continuing its efforts to connect your car to your phone in interesting ways with the new EnLighten app. The idea here is to let your phone act as a bridge between alerts about traffic signals and the car, so that notifications can be displayed in the dash instead of on your phone. That should keep more eyes on the road and let drivers minimize those races to the next red light, which will save fuel. At least, it will do so in cities that broadcast that sort of signal information. Read more in the press release below. Traffic City Info Makes Driving in Cities Easier than Ever Woodcliff Lake, N.J. – July 27, 2015... The BMW Group announced today that it is the first manufacturer to bring the EnLighten App, by Connected Signals, into the car. Drivers of BMW Vehicles with iOS Devices will be able to see traffic signal data on the vehicle's display in real time. The EnLighten app makes driving in cities easier by helping the driver anticipate traffic signal changes, which can increase safety and help save fuel by avoiding unnecessary acceleration. The EnLighten app shows the current status of the traffic light in front of the car in real time as well as a countdown to when the signal will change. Based on the current vehicle position, as well as its speed, the EnLighten app offers a recommendation about whether or not to stop for the traffic light or proceed through. An audio alert notifies the driver about a pending change in the signal they are approaching.