Mercedes-Benz To Add New Model At U.S. Plant

AppId is over the quota
AppId is over the quota
By AutoObserver Staff October 21, 2011

Daimler AG, parent company of automaker Mercedes-Benz, said it will invest $350 million to add production of a new model at its U.S. assembly plant in Tuscaloosa, Ala., starting in 2015. The company did not disclose what model will be added at the Mercedes-Benz U.S. International (MBUSI) site, but it already has announced some $2 billion worth of expansion investment at the Tuscaloosa plant that has in recent years become increasingly crucial to its global manufacturing portfolio. Daimler said in a statement the undisclosed new model to be built in the U.S. is one of ten new vehicles Mercedes-Benz will introduce in the next four years.

The Tuscaloosa site currently has a capacity of 160,000 units and is the sole source for the M-Class midsize crossover and GL-Class fullsize crossover. The company is adding production of the C-Class, its current entry-level model in the U.S., at the plant starting when the new-generation model is launched in 2014, although the MBUSI site will not be the only source for C-Class production.

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Mercedes-Benz To Add New Model At U.S. Plant

AppId is over the quota
AppId is over the quota
By AutoObserver Staff October 21, 2011

Daimler AG, parent company of automaker Mercedes-Benz, said it will invest $350 million to add production of a new model at its U.S. assembly plant in Tuscaloosa, Ala., starting in 2015. The company did not disclose what model will be added at the Mercedes-Benz U.S. International (MBUSI) site, but it already has announced some $2 billion worth of expansion investment at the Tuscaloosa plant that has in recent years become increasingly crucial to its global manufacturing portfolio. Daimler said in a statement the undisclosed new model to be built in the U.S. is one of ten new vehicles Mercedes-Benz will introduce in the next four years.

The Tuscaloosa site currently has a capacity of 160,000 units and is the sole source for the M-Class midsize crossover and GL-Class fullsize crossover. The company is adding production of the C-Class, its current entry-level model in the U.S., at the plant starting when the new-generation model is launched in 2014, although the MBUSI site will not be the only source for C-Class production.

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Obama, South Korea President To Visit GM Plant

AppId is over the quota
AppId is over the quota
By AutoObserver Staff October 11, 2011

President Obama and South Korea president Lee Myung-bak plan to tour the General Motors Co. assembly plant in Lake Orion, Mich., this week, as the two nations push for passage of a new Free Trade Agreement. The Lake Orion plant, idled since 2009, is the production site for GM’s all-new Chevrolet Sonic subcompact sedan and hatchback – the predecessor of which, the Chevy Aveo, was imported from South Korea – and the Buick Verano compact sedan.

The latest version of the U.S.-South Korea Free Trade agreement has provisions that will see tariffs on U.S.-made vehicles imported to South Korea sequentially reduced to zero over a 5-year period while immediately ending South Korea’s existing 10-percent tariff on imported trucks. The pact also addresses several non-tariff impediments to imported vehicles in the South Korean market, including a purchaser tax based on engine displacement.

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Tata Must Return Land Once Earmarked For Nano Plant

AppId is over the quota
AppId is over the quota
By AutoObserver Staff September 28, 2011

A court in India ruled this week that India’s Tata Motors Ltd. cannot own land leased in the country’s West Bengal region that it leased with the intention of building a new assembly plant for its Nano subcompact car, often cited as the world’s cheapest automobile. After nearly completing the factory, Tata gave up on the site in late 2008 after aggressive protesting from nearby farmers about the company’s land acquisitions. Tata instead sited the assembly plant in another portion of India.

Tata, which also owns the Jaguar and Land Rover brands, was forced to delay the launch of the Nano because of the plant relocation and Nano sales have been on a rollercoaster trajectory ever since, while stock in the company itself also has recently been in sharp decline. Tata sold just 1,202 Nanos in August, reports said, an 85-percent decline from August, 2010. In India, the Nano currently sells for the equivalent of about $2,800.

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GM To Restart Tennessee Assembly Plant

AppId is over the quota
AppId is over the quota
By AutoObserver Staff September 19, 2011

Reports of details in the new tentative 4-year labor agreement between General Motors Co. and the United Auto Workers union indicate provisions of the proposed contract include a commitment from GM to reopen its Spring Hill, TN, assembly plant. The Spring Hill site, originally built to assemble vehicles exclusively for GM’s now-defunct Saturn division, was mothballed in late 2009 as GM was executing a massive restructuring.

Reports from Detroit, unconfirmed by GM, cite sources as saying the restarted Spring Hill plant will build a new vehicle and also engage in supplemental production for in-demand vehicles. The plant last built the Chevrolet Traverse fullsize crossover, assisting in production with the Traverse’s “home” plant in Lansing, MI. It is not yet known when the plant would be restarted, but it likely would be staffed with a mix of new and veteran workers. The UAW rank-and-file membership still must approve the tentative contract, which would be in effect until fall of 2015.

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