Mercedes-Benz’s Alabama plant will now produce electric vehicles as Daimler has invested one billion USD in the Vance facility. Mercedes’ parent company has decided to assemble fully electric utility vehicles under its EQ sub-brand in the U.S. production line by the end of the decade. However, due to electric shift, the C-Class might have to move out from the production assembly.
The Alabama plant currently assembles the GLE and GLE Coupe, the larger GLS SUV and the C-class sedan. According to the reports, when Daimler made the EQ announcement, the plant in Vance was already at its ideal size, with 300,000 vehicles produced in the year 2016.
Britta Seeger, Global Sales Chief, Mercedes, commenting on the EV production said, “The most important point for us was to make sure we have the EQ production in the U.S. If you have electric mobility, it makes sense to go very regional because you want to avoid huge transportation." The German carmaker predicts the EQ line could account for 15 to 25 per cent of its global sales by the year 2025.
Mercedes-Benz also has a capable production facility in South Africa, Germany and here in India. The shift of conventional vehicle out of the Alabama facility would put up additional demands from these facilities. If the shift of production actually happens, it will only be at the turn of the decade. Mercedes could wait until early 2019 to make the final call