Strategic Move: Mercedes-Benz Expands SUV Capacities in the U.S.
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Additional production capacities for Mercedes-Benz SUVs in the USA are created at U.S. contract manufacturer AM General who will take over production of the R-Class in the future
Markus Schäfer, Member of the Divisional Board Mercedes-Benz Cars, Manufacturing and Supply Chain Management: “Within our growth strategy we are expanding our global production network and will additionally use the capacities of a contract manufacturer.”
Jason Hoff, President and CEO of MBUSI: “With the introduction of the new GLE Coupé and the ongoing strong demand for SUVs, Plant Tuscaloosa needs all available production capacities for this segment.”
STUTTGART, GERMANY/ TUSCALOSSA, ALABAMA -- Jan 27, 2015: Mercedes-Benz is reorganizing its SUV production and will expand production capacities in the USA. The U.S. contract manufacturer AM General will join the production network of Mercedes-Benz Cars, producing the R-Class in South Bend, Indiana, in the future. Production capacities at the Mercedes-Benz Tuscaloosa plant (Mercedes-Benz U.S. International – MBUSI), which will be gradually be released in this process, will then be used for the M-Class, the GL-Class and the new GLE Coupé due in summer. “Within our growth strategy we are expanding our global production network and will additionally use the capacities of a contract manufacturer. We are thus increasing flexibility and continue to improve our competitiveness,” says Markus Schäfer, Member of the Divisional Board Mercedes-Benz Cars, Manufacturing and Supply Chain Management.
2015 will be the year of the SUV for Mercedes-Benz. Almost the entire SUV portfolio will be renewed: the M-Class and the GL-Class will receive a facelift - in line with the new Mercedes-Benz nomenclature the previous model designations will then be replaced by GLE-Class and GLS-Class, respectively. In addition, the GLE Coupé will hit the market in summer as an entirely new model. Mercedes-Benz expects additional sales momentum in 2015 from this product offensive.
Jason Hoff, President and CEO of MBUSI: “With the introduction of the new GLE Coupé and the ongoing strong demand for SUVs, Plant Tuscaloosa needs all available production capacities for this segment.” Production capacity of the Mercedes-Benz Tuscaloosa plant is planned to reach more than 300,000 units this year. Previous R-Class capacity will be used for the other SUV model lines. In addition to the SUV models, the plant has been producing the new C-Class sedan since June 2014 - as one of four global locations in a production network with the lead plant in Bremen, Germany, the South African plant in East London, and the Chinese production location Beijing Benz Automotive Co. Ltd. (BBAC).
“Starting in the U.S. with production of one model in 1997 to four models today and soon to be five models in 2015, we are proud that our plant here in Tuscaloosa, Alabama continues to grow and change – always embodying our tradition of producing best in class vehicles,” Hoff said.
The Mercedes-Benz R-Class has been offered exclusively in China since 2013. The model series, which has been available in China from the outset as a long version with six or seven seats, continues to be popular with Chinese customers. Contract manufacturing at AM General is planned to start in summer 2015.
About the Mercedes-Benz Tuscaloosa plant
The Mercedes-Benz Tuscaloosa plant (Mercedes-Benz U.S. International - MBUSI) was founded in 1995 and started production of the M-Class in 1997. The plant added the R-Class in 2005, the GL-Class in 2006, and the new C-Class sedan for the North American market in 2014. In 2014, the plant produced more than 235,000 vehicles. To date, more than 2.1 million vehicles have rolled off the plant's line for customers around the world.
