Mercedes-Benz to shift output of R-Class to AM General in Indiana

Article by Christian A., on January 30, 2015

Mercedes-Benz is planning to transfer this summer the production of the R-Class crossover from Alabama to Indiana, with AM General – maker of the Humvee – as the contract manufacturer. Mercedes cited the need to free up production capacity at its Alabama site near Tuscaloosa.

Jason Hoff, chief executive of Mercedes-Benz U.S. International, said in a statement that the Tuscaloosa site needs more free capacity for SUV production and the output of the new GLE Coupe.

The freed capacity will be used to produce other Mercedes models like the GLE class and the GL class. Markus Schaefer, member of the divisional board for Mercedes-Benz cars, manufacturing and supply chain management, said in the statement that the use of a contract manufacturer is within the carmaker’s growth strategy.

As part of the shift, Mercedes is moving production tools to AM General’s production site near South Bend, Ind. Mercedes launched the R class in 2005 but pulled it out from the United States in 2012.

Mercedes-Benz has been selling the R class in China since 2013. AM General in a statement that said it has inked a multiyear deal to become Mercedes' "first and only" contract manufacturing operator in the US.

AM General expects the first R class to roll off its production lines this summer, adding that it plans to hire and train hundreds of new workers for R-class production.

Mercedes’ parent Daimler AG opted to produce the R class in the US instead of China due an existing supplier network. Moreover, it is easier to move the tooling to another U.S. site, the source said.

The production run is indefinite and demand is strong enough to justify several more years of production. A source told Automotive News that Mercedes will produce around 10,000 units of the R class annually.

If you liked the article, share on:

Comments

Recommended

The primary suggestion of a 4x4 ute from French company Peugeot was first revealed in 2016. Fifteen months later, the production version is launched. Now, Peugeot is not shying away...
by - June 24, 2017
The new Jaguar E-Pace crossover will soon hold its official launch on July 13 and is expected to arrive at the showrooms by early next year. It couldn’t have come...
by - June 24, 2017
As prices of the original Shelby Cobra have skyrocketed into astronomical proportions, there are firms like Superformance that serve replicas to consumers who demand the same levels of performance at...
by - June 24, 2017
New and improved 2018 Subaru Legacy comes packed with a number of upgraded features from the get go - from the exterior to the interior. And the company has finally...
by - June 23, 2017
In an interview involving Lamborghini CEO Stefano Domenicali and Automotive News, the topic about the Urus was thoroughly discussed. This super SUV is scheduled to make its debut later this...
by - June 23, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries