Rumormill: Mercedes-Benz expected to expand Alabama plant
 

Filed under: SUVs, Plants/Manufacturing, Daimler, Mercedes-Benz, Rumormill

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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).

The expansion news comes at an odd time, as not only has the automaker's sales been flagging in the U.S. (down 20 percent in February year-over-year, admittedly much better than the market plunge of 41.4 percent), but sales of Vance-built SUVs in particular have fallen off, with Benz responding by reducing the plant's workforce.

Automotive News says the expansion effort won't be completed until 2011, but word yet on how much capacity this will give the plant (and what it will be used for) is not yet known.

[Source: Automotive News - subs. req'd]
Rumormill: Mercedes-Benz expected to expand Alabama plant originally appeared on Autoblog on Mon, 23 Mar 2009 10:58:00 EST. Please see our terms for use of feeds.



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Autoblog
03-23-2009 11:58 AM

Maybe they're planning to build something else there, too?

R&D for now and then they will build whatever they come up with.

OR the will ship knock down kits of the possibly upcoming B-Class and assemble them there. (Like they do with Sprinters)

My guess is that it will be a combination of the two.

Presumably they have something in mind they think will outsell what they're buiding there now.

I want the damn B Class!

Maybe they're taking over the military contract from AM General....... They are stopping making the hummer....

AWLrighty!
 

Domestic G class
(Parts from Deutschland,assembled in Tuscaloosa)

AND MOGs for our Military...
(You Know the Austrians + Germans ain't gonna do ANYTHING with articulated drawings for a hummer except throw them in the TRASH ! Where they BeLong !)