R-class Production of Mercedes to move to AM General

Published By : 28 Jan 2015 | Published By : QYRESEARCH

Mercedes-Benz is planning to move its production of R-class range from its Alabama plant to the contract manufacturer in Indiana, AM General during this summer. The automaker released a statement yesterday saying that it needed to free space in its assembly operations located near Tuscaloosa, Ala. 

According to the CEO of Mercedes-Benz, Jason Hoff, the introduction of their new GLE Coupe combined with the ongoing increasing demand for SUVs, Tuscaloosa requires all the available production capabilities for this sector. The R-class production capacity will be employed for other models of Mercedes Benz, such as GL class and GLE class.

The production tools will be moved to AM General’s site near South Bend, Indiana. AM General is well known as the producer of Humvee military vehicle. The R-class from Mercedes Benz will be available for sale only in the Chinese market. This car model was to be launched in 2005, but was removed from the U.S. market in 2012, and since 2013 it has been a China only vehicle.

Mercedes Benz expects its R-class model to start rolling from production lines during this summer. They will need to hire and provide training for hundreds of new workers in order to prepare for their R-class production. According to a statement from AM General CEO, they look forward to a long term relationship with the firm Mercedes and are expanding their services to the U.S. and global automotive industry.

Schaefer from the divisional board of Mercedes Benz cars in the manufacturing and supply chain management department stated that their growth strategy is to expand the organization’s global production network, and additionally employ the capacities of contract manufacturers. He further said that they are increasing flexibility and will continue to improve their competitiveness.
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