Mercedes Alabama Plant Gets An Expansion

Mercedes Alabama Plant Gets An Expansion

The Mercedes Benz car’s Alabama plant is going to get an expansion very soon. Mercedes Benz has confirmed that it is going to invest $1.3 billion towards expansion of its Tuscaloosa, Alabama plant that it will be suing to make the sports utility vehicles. The crossover models are in great demand nowadays in the car market and hence Mercedes Benz has decided to expand the plant to produce more SUVs.

The expanded plant in Alabama will produce the next generation sports utility vehicles of Mercedes Benz as well as the hybrid versions. This $1.3 billion investment that Mercedes Benz will be making will also offer 300 new jobs in the plant. There will also be high tech equipments used in the plant. This was revealed by the board member of the Mercedes supply and manufacturing chain management, Markus Schafer.

The Tuscaloosa, Alabama plant will be connected to all other Mercedes Benz car locations in the world as part of the global production network of the luxury car brand. Any site will be able to access data and process management from anywhere. All installations and every robot can be controlled and updated by making use of the software programs.

The Mercedes group is part of the popular Daimler group. The U.S. plant of the Mercedes group commenced its operations in 1995 with a $4.5 billion investment. Two years later, the production of the GLE commenced in the U.S. plant of Mercedes Benz. The plan of Mercedes is to convert the existing Tuscaloosa pant into a high tech production location. This will help in producing top quality and high end luxury SUVs in the future.

The expansion of the Tuscaloosa, Alabama plant will see the plant get a new body shop and there will be major emphasis given to the sports utility vehicle assembly area of the plant. The expansion will be completed in a few years time. The plant will be able to produce 300,000 vehicles or more in a year, after this $1.3 billion expansion. The plant produced 232,000 vehicles in 2014.

The SUVs are one of the most popular and in demand vehicles in America at the moment. The share of SUV sales moved up to one third of U.S. car sales last year. These cars are very popular in China, but it looks like the U.S. car buyers are also interested in buying luxury SUV brands now. Mercedes is hoping that this new plant will help in increasing the sales of its SUVs in America.

References:

www.forbes.com

www.usatoday.com

September 20th, 2015 by