Expects North American production to increase to 375,000 units in 2020

Mercedes-Benz has confirmed that its new sport utility vehicle (SUV) will go into production at its US plant in Tuscaloosa (Alabama) in 2015. The programme has been developed under the C292 codename and was previewed by the Concept Coupé shown at the Beijing Auto Show in April 2014. Sources report that the production car will come with seats for a four- and possibly a five-seat configuration. The model is said to be the first for Daimler's MHA architecture, a rear- or all-wheel drive platform for large SUVs. Separately, a German magazine has reported that Daimler's executive board is expected to approve plans to build a joint manufacturing plant with Nissan in Mexico within the next two weeks. The planned Nissan-Mercedes partnership will build small, up-market cars for the Infiniti and Mercedes brands, with the two having already set out a legal framework for a 50/50 joint-venture (JV). The JV includes Daimler setting up production capacity at Nissan's existing Aguascalientes facilities.

Significance: The two moves will lift Daimler's North American production from 241,000 units in 2014 to about 375,000 units in 2020. Confirmation of the SUV production in Alabama follows the start of C-Class production there. The Alabama production of the MLC is forecast at about 36,000 units annually, while the GLA is forecast to reach 47,000 units per annum in 2020. Leveraging the Mexican production facility enables a skilled, lower-cost workforce in a country where free-trade agreements enable access to more markets, which is important for the smaller vehicles.

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