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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.

Aston Martin and Mercedes-AMG formalize technical partnership

The development of a partnership between Mercedes-Benz and Aston Martin has been a long time coming. The news dates back to 2008, and over the five years since was supposed to lead to a rejuvenation of both the Maybach and Lagonda brands. That program ultimately fell apart, but the tie-in was forged afresh in July when the two automakers signed a letter of intent over a renewed partnership. And now that partnership has been formalized.
In a deal just announced, Mercedes-AMG will build a new V8 engine for Aston Martin that will power a new generation of luxury GTs for the British marque, presumably to replace the 4.7-liter V8 in the Vantage. The relationship appears to be similar to the one already in place between AMG and Pagani, only in this case, will involve Daimler taking as much as a five-percent stake in Aston Martin and an observer seat on Aston's board.
The technical partnership is also set to lead to the supply of electric and electronic systems, and could incorporate "additional areas of cooperation in the future." Whether that will include a fresh attempt at reviving Lagonda remains to be seen, as does the future of Aston's long-serving, Ford-based 6.0-liter V12 engine. But for now you can read the full announcement below.

2016 Mercedes-Maybach S600 First Drive

Imagine the audacity: during the salad days of the early 2000s, the company that invented the automobile – already synonymous with class-leading luxury – sought to further expand its portfolio by crashing the ultraluxury party. Going up against the likes of Rolls-Royce and Bentley, Mercedes-Benz traded its unmistakable Three-Pointed Star for a Mighty Mouse-like logo, exhuming a stately, long-dead German marque originally founded in 1909. The long-wheelbase Maybach 62 listed at an epic $360,000, while later spinoffs included curiosities like the nearly $700,000 Zeppelin, and a roofless, seven-figure limousine dubbed Laundaulet. By the time the financial bubble finally burst in 2008, the brand's fate was all but sealed, with US sales dropping into the double digits. It limped along another four years, but when the nameplate finally went kerplunk, it left behind it a trail of disappointed movers, shakers, moguls and rappers. The perfect postmodern metaphor for the brand's funeral pyre? Kanye West and Jay-Z's Otis music video, in which a perfectly fine Maybach is chopped and deconstructed, flames spewing out the tailpipes as it powerslides through an empty parking lot. Meet The (Sorta) New Boss Rising from the ashes of hubris is the 2016 Mercedes-Maybach S600, a recalibrated stab at high-end luxury with a startlingly similar, yet different, approach to its forbear. Like the last go, the new sled features a significantly longer wheelbase, which stretches 8.1 inches over the standard S600. Additional sound damping helps it claim the quietest rear cabin in all of production automobiledom, and posher trim bits include a rim of wood surrounding the reclining rear seats. Among the livery-focused special features is a rearview mirror-mounted microphone to amplify the driver's voice, an available rear fridge, and an executive seat package with folding tray tables. The super high-end hallmarks are there – a twin-turbo V12 dispatching sub-5 second 0 to 60 times, a stunning 24 speaker Burmester sound system, double-M branded silver plate champagne flutes, et al. – but the hyperinflated price tag is not. Starting at $189,350, roughly half the cost of the old flagship, the new Maybach isn't even the most expensive Mercedes-Benz you can buy. That distinction goes to the S65 AMG Coupe, which empties your coffers to the tune of $230,900.