Desperate for more SUV building space at its Alabama assembly plant, Mercedes is contracting out build of its now China-only R-Class to AM General of Hummer fame.

In a statement, AM General said it would build the model in its 675,000 sq ft commercial assembly plant in Mishawaka, Indiana.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Production at Mercedes-Benz’s first and only contract manufacturer in the US begins this summer.

AM General said the plant is a full service manufacturing and support factory with robotic welding, painting and assembly capability “with a lean manufacturing culture and highly skilled workforce”.

Its contract assembly includes work for General Motors and other OEMs.

“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 US International, told German magazine Automobilwoche.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Freed up R-Class production capacity at Tuscaloosa would be used for other Mercedes-Benz models, such as the GLE-Class and the GL-Class.

Production tools would be shifted to AM General.

The R-Class was launched in early 2005 and has been a China-only vehicle since 2013.

A source told Automobilwoche Mercedes production would be around or slightly over 10,000 units annually. Only the long-wheelbase version would be made.

Daimler chose the US over China because of the existing supplier network, Automobilwoche said. It was also easier to move the tooling to another US site.

The production run is indefinite and demand is strong enough to justify several more years of production, Automobilwoche said.