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.

If the rumors are true, the Mercedes-Benz plant (which currently builds GL, M, and R class vehicles) will benefit from a $290 million investment that is to begin within 60 days. The news evidently leaked out after company officials contacted the Tuscaloosa County Industrial Development Authority about property and sales tax breaks (which it apparently received).

Last November, when we talked with SmartUSA boss Dave Schembri at the LA Auto Show, he acknowledged that a number of the people who had placed early orders for the tiny fortwo had canceled before taking delivery. At that time, the cancellation rate was about thirty percent, although most of those cars were being taken up by people who wanted immediate delivery. Apparently, that situation has changed as dealers who last year typically had no more than a meager handful of cars in stock now sometimes have dozens.