A building, or a setting for the existing vehicles depot for upgrading existing vehicles. It can have the same cost, just to spare us the trouble of deleting and rebuilding all the vehicles when we upgrade to another tier of vehicles.
Vehicle upgrade depot
It makes no logical sense that you "upgrade" a tiny truck to a medium-sized truck.
I'd much rather be able to "cull" Pick-Ups from the vehicle management window, like there's a button that lets me "Cull 1" or "Cull 5" Pick-Ups or 1 or 5 Trucks from the general (un-assigned) pool. I don't like to have to "hunt down" Pick-Ups when I want to scrap them, but I think my proposed solution makes a lot more senes.
Let me get this straight, Peter...you're fine with the mystical hand of the unknown deity reaching down from on high to magically enlarge a storage building or a manufacturing facility but you're put off by upgrading a TRUCK?
For myself, I see nothing wrong with upgrading existing vehicles. I would simply have them return to the Depot to do so.