(September 22, 2017) TUSCALOOSA, Ala. —  Mercedes-Benz will set up electric vehicle production in the United States at its Tuscaloosa, Ala., plant. The company plans to produce EQ-branded fully electric utility vehicles. In addition, a battery plant will also be built near the existing passenger-car plant ensuring availability of cutting-edge technology for future generations of Mercedes-Benz vehicles built in the U.S.

In total, Mercedes-Benz plans to invest $1 billion in the expansion of its industrial footprint in the region, most of which is slated for the electric initiative. It is expected that once completed these investments will create more than 600 additional jobs. Final details of the plans are still being worked on in partnership with Alabama.

"We are excited to celebrate 20 years of production in Tuscaloosa by expanding our operations in the region and by bringing our electric initiative to the United States. With this one billion dollar investment, we are significantly growing our manufacturing footprint here in Alabama, while sending a clear message to our customers across the U.S. and around the world: Mercedes-Benz will continue to be on the cutting-edge of electric vehicle development and production," said Markus Schäfer, member of the Divisional Board of Mercedes-Benz Cars, Production and Supply Chain.


Mercedes-Benz Tuscaloosa, Ala., plant

"With production locations for Mercedes and batteries in Europe, China and now the U.S., our global network is ready for the era of electric vehicles. Thanks to our plant modernization in Tuscaloosa, we will be able to quickly ramp up U.S. production of EQ models, while also being more flexible to our customers' demands for innovative vehicles that live up to the excellent quality that is synonymous with the Mercedes-Benz brand."

In addition to the electric initiative, the logistics activities in the U.S. will be expanded with a new Global Logistics Center and a new after-sales North American hub, exporting car-kits to global assembly plants and spare parts from the U.S. and North America to worldwide markets.

"With the addition of electric SUVs to our future fleet, we will provide discerning drivers with a new, high quality automotive option that will marry performance, luxury, and environmental stewardship," Schäfer said. "As a result of our investments in Alabama, Mercedes-Benz customers will soon be able to enjoy advanced technology coupled with a luxury driving experience."

The plant in Tuscaloosa exclusively provides worldwide clients with the SUV models GLE, GLS and GLE Coupé that continue the tradition of quality associated with Mercedes-Benz. With the upcoming production of the next SUV generation the plant will enhance its proven production portfolio with modern plug-in hybrids, responding flexibly and efficiently to market demand.

With the additional integration of electric vehicles, the plant is shaping the future of electric mobility worldwide. The announcement was part of the 20-year celebration at MBUSI.

Tuscaloosa is home to Mercedes-Benz's SUV production for the world market, having started production of the former M-Class (today the GLE) in 1997. As the first automotive manufacturing location in Alabama, the plant also served as the catalyst for additional OEMs, automotive suppliers and supporting businesses to come to the area, creating thousands of jobs in the region and leading to Alabama's strong position as one of the key automotive business clusters in the United States.

Mercedes-Benz will start producing electric utility models of the EQ brand in Tuscaloosa at the beginning of the next decade. EQ models will be integrated into the series production at the plant. This is possible because of the early investments in flexibility and technical equipment at the plant that offer trailblazing Industry 4.0 technologies. With the Tuscaloosa plant, Mercedes-Benz will have electric mobility hubs on three continents serving customers' demand around the globe.

By 2022, the company will electrify the entire portfolio of Mercedes, offering customers at least one electrified alternative in all segments from smart to large SUVs. The company is planning to offer more than 50 electrified vehicle variants. At the same time, Mercedes-Benz will be continuously supporting the development of plug-in hybrids and the introduction of 48-volt-systems.

The battery factory near plant Tuscaloosa will be part of the global battery production network of Mercedes-Benz Cars for local demand and export. In total, Daimler will invest $1.18 billion (more than one billion Euros) in the battery production network, which will also include production facilities in Germany and China.

Construction work for the new one million square-foot facility in Tuscaloosa is expected to begin in 2018, with operations planned to start at the beginning of the next decade.