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2011 Mercedes-Benz R-Class - Click above for high-res image gallery

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Last week, we told you how despite the downturn, Daimler is upping its investment in the state of Michigan, coming to terms with the city of Ann Arbor to build a new hybrid and electric R&D facility. Now, Automotive News is reporting that the automaker is expected to actually expand its Vance, Alabama production plant.

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After selling only 18,168 samples of their R-Class in 2007, even after dropping the base price by $5,000, Mercedes will try taking the uber-wagon downmarket in 2008.

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BMW is rumored to be in the process of developing a pseudo-crossover built on the X5's underpinnings, but until now it was only gossip and conjecture. KGP Photography maintains that this mule is such a vehicle, judging by the steeply raked windscreen, higher beltline and camo-clad rear end.

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