Mercedes plans to move R-class production to AM General in Indiana

Mercedes-Benz plans to shift production of the R-class crossover from its Alabama plant to contract manufacturer AM General in Indiana this summer.The German automaker, in a statement released today by parent Daimler AG, said it needed to free up space in its assembly operations near Tuscaloosa, Ala.“With the introduction of the new GLE Coupe and the ongoing strong demand for SUVs, Tuscaloosa needs all available production capacities for this segment,” Jason Hoff, CEO of Mercedes-Benz U.S. International, said in a statement.The R-class production capacity will be used for other Mercedes-Benz models, such as the GLE class and the GL class.“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,” Markus Schaefer, member of the divisional board for Mercedes-Benz cars, manufacturing and supply chain management, said in the statement.Production tools will be shifted to AM General’s production site near South Bend, Ind. AM General is known as the producer of the HMMWV “Humvee” military vehicle. AM General announced the deal in a statement today.The R class is sold in the Chinese market only. Launched in early 2005, it was yanked from the U.S. market in 2012; it has been a China-only vehicle since 2013.In a statement, AM General said it has a multiyear agreement to become Mercedes-Benz's "first and only" contract manufacturing operator in the U.S.The company said it expects the R class to start rolling off its production lines this summer and "will hire and train hundreds of new workers in order to prepare for R-class production."“We look forward to a long term relationship with Mercedes and expanding our services to the U.S. and global auto industry," AM General CEO Charlie Hall said in the statement. Loyal following

Mercedes plans to move R-class production to AM General in Indiana

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