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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.

Recharge Wrap-up: BMW i3 goes against Mercedes B-Class ED, Tesla good for business

Car and Driver has published a comparison test pitting the 2014 BMW i3 against the 2014 Mercedes-Benz B-class Electric Drive. The test not only measured the quality of the driving experience, but also all the quantitative details that are especially important when looking at electric vehicles. For instance, the Benz's real-world MPGe surpassed its own rating, but it still couldn't match the BMW. The B-Class, though, won in the range department. We won't spoil all the results, or Car and Driver's overall pick, but you can head over to the article to find out for yourself. Tesla's expanding business, including the Gigafactory being built in Reno, NV, is encouraging growth in the locales and associated businesses. Some of Tesla's suppliers are talking of relocation, wanting to be close to the action stirred up by the electric automaker's expansion. It makes good business sense to be in the same neighborhood as Tesla. "We can react quickly, and our engineers are constantly working with Tesla," says Futuris General Manager Sam Coughlin. Brookings Institute fellow Jennifer Vey says, "The land around Tesla is being redeveloped and reimagined. It's a mash-up of an anchor campus, startups, housing and transit, in a physically compact area where companies can cluster and connect." Read more at San Jose Mercury News. EVs are doing even more to reduce energy use clean up the air, according to new analysis from the Union of Concerned Scientists. According to findings, 60 percent of Americans now live in areas where EVs do more to reduce emissions than hybrids, up from 45 percent in 2012. Average electricity use is now 0.325 kWh per mile, down five percent from 2011. EV performance - in terms of mileage and emissions - is improving compared to traditional fuel vehicles, based on the sources of electricity in various regions. Read more from the Union of Concerned Scientists. Zipcar's carsharing network has launched in Paris. Zipcar is expanding across Europe, and has already established itself in Austria, Spain and the UK. According to Zipcar France's General Manager Etienne Hermite, "In a highly populated city, Zipcar's model has been proven to remove up to 15 personally owned vehicles from the road for each Zipcar in service, reducing parking demand, congestion and emissions." Zipcar European President Massimo Marsili hopes that most Parisians will eventually be just a short walk from a Zipcar.

The UK votes for Brexit and it will impact automakers

It's the first morning after the United Kingdom voted for what's become known as Brexit – that is, to leave the European Union and its tariff-free internal market. Now begins a two-year process in which the UK will have to negotiate with the rest of the EU trading bloc, which is its largest export market, about many things. One of them may be tariffs, and that could severely impact any automaker that builds cars in the UK. This doesn't just mean companies that you think of as British, like Mini and Jaguar. Both of those automakers are owned by foreign companies, incidentally. Mini and Rolls-Royce are owned by BMW, Jaguar and Land Rover by Tata Motors of India, and Bentley by the VW Group. Many other automakers produce cars in the UK for sale within that country and also export to the EU. Tariffs could damage the profits of each of these companies, and perhaps cause them to shift manufacturing out of the UK, significantly damaging the country's resurgent manufacturing industry. Autonews Europe dug up some interesting numbers on that last point. Nissan, the country's second-largest auto producer, builds 475k or so cars in the UK but the vast majority are sent abroad. Toyota built 190k cars last year in Britain, of which 75 percent went to the EU and just 10 percent were sold in the country. Investors are skittish at the news. The value of the pound sterling has plummeted by 8 percent as of this writing, at one point yesterday reaching levels not seen since 1985. Shares at Tata Motors, which counts Jaguar and Land Rover as bright jewels in its portfolio, were off by nearly 12 percent according to Autonews Europe. So what happens next? No one's terribly sure, although the feeling seems to be that the jilted EU will impost tariffs of up to 10 percent on UK exports. It's likely that the UK will reciprocate, and thus it'll be more expensive to buy a European-made car in the UK. Both situations will likely negatively affect the country, as both production of new cars and sales to UK consumers will both fall. Evercore Automotive Research figures the combined damage will be roughly $9b in lost profits to automakers, and an as-of-yet unquantified impact on auto production jobs. Perhaps the EU's leaders in Brussels will be in a better mood in two years, and the process won't devolve into a trade war. In the immediate wake of the Brexit vote, though, the mood is grim, the EU leadership is angry, and investors are spooked.