Click above for high-res gallery of the BMW X1 Concept

As consumer demand for thirsty vehicles continues to wane, Mercedes-Benz is being forced to slow production at the Alabama plant which manufactures their GL- and ML-Class SUVs and the R-Class crossover. Sales of Mercedes domestic trucks fell to 5,090 vehicles in June, representing an 11.9 percent decline from the same period last year. The move marks the first time in more than a decade of U.S. production, that the German automaker has reduced output due to market and economic conditions. The cuts will affect more than 4,000 of the plant's employees, and unfortunately will trickle-down to hurt the countless other companies who provide just-in-time components to support Mercedes production.

Volkswagen's management will meet tomorrow to refine plans to expand automobile production into the United States. While a final recommendation isn't expected until July 15, Alabama appears to be the front runner (over second-choice Tennessee) to receive the $788 million plant that will initially build the Volkswagen Jetta sedan and an all-new Passat-sized sedan. VW is also rumored to be considering production of a long-wheelbase version of the Volkswagen Tiguan and the Audi's Q5 on our shores.

Click on the above image to see our Ford Expedition gallery

BMW announced today that it would begin building its entry-level CUV at the automaker's Leipzig plant, alongside the 1- and 3-series. The news confirms rumors that the X1, which has yet to be revealed publicly, will indeed be built on the 3-series platform, lending some amount of sporting cred to the mini 'ute.

As domestic automobile manufacturers cut production and lay off workers because they were caught off-guard when consumer buying habits switched to more fuel-efficient vehicles, Honda will effortlessly shuffle its production to meet U.S. demand for small cars.

It was only in December that we mention Alfa Romeo was planning to open a factory in the United States. We followed that story with another in March when Fiat also mentioned a possibility of Iveco truck production coming to the States. It was in that same month that Fiat Chief Executive Sergio Marchionne told the Financial Times that his company was in talks with major U.S. automakers about sharing production.

Click above for a high-res gallery of the spied Audi TT Clubsport Quattro.