Mercedes Benz to invest $1 billion in Alabama, add 600 jobs

It operates through Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, Daimler Buses, and Daimler Financial Services segments.

The Daimler (DDAIF) owned company said in a statement that the new investment will create 600 new jobs in communities near its plant in Tuscaloosa.

In addition, it will build a new one million square foot battery plant near the vehicle factory, making it the company’s fifth battery plant globally.

The mega investment in U.S. will put the German firm in direct competition with Tesla (TSLA) on its home turf.

Executives at the Auto Giant have just signed a check to the tune of $1 billion dollars to expand a US-based Mercedes plant in Vance, Alabama where the Silver Star plans to build its EQ crossover.

This will mark the start of Mercedes’ overseas EV manufacturing, as Automotive News reports that the company’s electric models have all been produced in Germany before now. The Palo Alto, California-based carmaker’s flagship Model S sedan outsold the Mercedes S-Class and BMW 7-Series a year ago in the USA, putting pressure on the brands to defend their image as automotive innovators.

“This is an exciting day for MBUSI and our entire team here in Alabama”, said Jason Hoff, President and CEO of Mercedes-Benz U.S. worldwide during the “All Team Member” meeting. The company is planning to offer more than 50 electrified vehicle variants.

The luxury division of Germany’s Daimler AG said it plans to manufacture electric SUVs under Mercedes’ EQ sub-brand at the Alabama plant by the start of the next decade.

Mercedes-Benz is consolidating three existing after-sales warehouses at the new hub, which will supply markets overseas with spare parts.

Hoff said building dimensions for the Global Logistics Center are still being worked out, as are those of the after-sales hub. This allows the company to meet rising market demands amid the growing variety of models.

MBUSI – located in Tuscaloosa County, Alabama – is the production location for the GLE, GLS and GLE Coupe SUVs around the world, as well as the C-Class sedan for North America.

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