Mercedes to shift R-Class production to Indiana

Believe it or not, the Mercedes-Benz’s R-Class crossover is still in production at the company’s Tuscaloosa, Alabama, production facility, but that won’t be the case for long.
That’s because on Tuesday Mercedes-Benz announced that it will shift R-Class production away from Tuscaloosa this summer to clear up room for its more volume-oriented utility models. Production of the R-Class will be moved to contract manufacturer AM General in Indiana.

“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,” said Markus Schäfer, Member of the Divisional Board Mercedes-Benz Cars, Manufacturing and Supply Chain Management.

Mercedes will use its newfound capacity in Alabama to increase production of its M-Class, GL-Class and upcoming GLE Coupe lines of utility vehicles.

Launched in 2005, Mercedes was ultimately forced to pull the R-Class from the U.S. market in 2012 due to slumping sales. Despite its weak reception here, the R-Class built a loyal following in China, where it has been sold exclusively since 2013.

AM General is best known for building Hummer-branded vehicles. The shift to AM General is somewhat ironic as the plant is staffed by the UAW, the very same labor union that has been trying to organize Mercedes’ Tuscaloosa plant for years.