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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.

UAW tactics called into question at VW's TN plant

The United Auto Workers is in hot water with some of the very workers it is trying to unionize at Volkswagen's Chattanooga assembly plant. According to The Tennessean, eight Volkswagen factory workers have filed complaints against the UAW with the National Labor Relations Board, claiming the union "misled or coerced" them into formally asking for union representation.
The UAW has instituted a major push at the Chattanooga plant to represent the 2,500 hourly laborers that build the VW Passat by using what's called a card-check process. The tactic is opposed by the National Right to Work Legal Defense foundation, the group representing the workers. The card-check process demands that a company recognize a union that obtains the signatures of more than half its workforce, according to The Tennessean. This tactic is in contrast to the more traditional route, which sees employees vote on union representation.
The workers filing the complaint claim that the UAW told them the cards merely called for a secret ballot, rather than an outright demand for union representation. Workers also allege that the UAW has made it overly difficult to reclaim their signed cards, some of which were signed so long ago that they have been rendered invalid. Although the cards can force a company's hand, federal law still allows the company to ask for a secret ballot before yielding to unionized workers.

2015 Volkswagen Passat Alltrack ready for any road, except in the US

If Volkswagen built a Subaru Outback-fighter for US buyers, the Passat Alltrack would be it, and the new generation of VW's off-roading wagon debuted this week at the Geneva Motor Show. The Passat Alltrack – which is not sold in the United States – takes the car-like demeanor of the Passat and punches it up into a go-anywhere crossover. It has permanent 4Motion all-wheel drive, raised ride height and an electronic differential lock. The body is fitted with modified bumpers with underbody guards, reinforced wheelarches and side moldings with extended sills. There are roof rails on top, and it rolls on standard 17-inch wheels with 18s and 19s optional. The Passat Alltrack offers five direct-injected engines, with the lineup comprised of two turbocharged gasoline mills and three turbo diesels. Volkswagen loaded the vehicle with a wide range of infotainment and safety features, including choices of five radio and navigation units. It also has fully digital instruments, heads-up display and a rear-seat entertainment system setup for laptops. There is also lane-changing assist, rear-traffic alert and trailer-assist features. As spokesman confirmed to Autoblog there are no plans to bring the Passat Alltrack to the US market. The new Passat Alltrack • World premiere at the Geneva International Motor Show • All-wheel drive all-rounder* combines exceptional off-road properties with excellent travel comfort The latest generation of the Passat Alltrack* is celebrating its debut at this year's Geneva International Motor Show. Based on the new Passat Estate, the new Passat Alltrack impresses with an independent off-road look, 4MOTION permanent all-wheel drive and highly advanced technologies. The updated version confidently handles rough terrain, on the one hand, while simultaneously providing excellent cruising comfort – thanks to the driving profile selector and DCC adaptive chassis control. The Passat Alltrack is an independent model within the model series. This can be seen in exterior features such as the modified bumpers (with underbody guard in stainless-steel look), rugged wheel arch and side sill moulding covers in "Anthracite" and sill extensions. Its 27.5 mm higher ground clearance also makes it ready for any driving situation. Anodised silver roof rails, "Alltrack" badges on the radiator grille and tailgate, and custom 17-inch alloy wheels (18- and 19-inch wheel options available) upgrade this Estate even more.