The governor of the US state of Alabama has announced that Indian auto parts supply company Samvardhana Motherson Group is planning a 700,000-square foot, USD150 million plant in Tuscaloosa, Alabama, to supply the Mercedes-Benz plant in Vance in the state. The plant will reportedly manufacture bumpers, spoilers, interior door panels, and other parts, reports the Associated Press. The plant is expected to create 650 jobs. The Indian supply company will operate as SMP Automotive Systems Alabama Inc.
Significance: Samvardhana has its headquarters in India and its European headquarters in Germany, and reportedly has operations in 25 countries and more than 70,000 employees. It was not clear from the report when construction of the new plant in Alabama will begin or when it will go online. Daimler's plant in Vance builds the Mercedes-Benz C-Class and GLE sport utility vehicle (SUV; formerly the M-Class), and the GLE Coupé, as well as the GL-Class. IHS Automotive forecasts the Daimler plant's output at nearly 295,000 units in 2016. However, that is forecasted to be the peak year, with output slipping to 257,000 units in 2018. In 2018, we expect production of the next-generation GLE-Class will begin at the plant. For the 2016 model year, the former M-Class received a facelift and the name change, as the brand realigned its naming conventions.
