Rumormill: Mercedes-Benz expected to expand Alabama plant
Last week, we told you how despite the downturn, Daimler is upping its investment in the state of Michigan, coming to terms with the city of Ann Arbor to build a new hybrid and electric R&D facility. Now, Automotive News is reporting that the automaker is expected to actually expand its Vance, Alabama production plant.
If the rumors are true, the Mercedes-Benz plant (which currently builds GL, M, and R class vehicles) will benefit from a $290 million investment that is to begin within 60 days. The news evidently leaked out after company officials contacted the Tuscaloosa County Industrial Development Authority about property and sales tax breaks (which it apparently received).
The expansion news comes at an odd time, as not only has the automaker's sales been flagging in the U.S. (down 20 percent in February year-over-year, admittedly much better than the market plunge of 41.4 percent), but sales of Vance-built SUVs in particular have fallen off, with Benz responding by reducing the plant's workforce.
Automotive News says the expansion effort won't be completed until 2011, but word yet on how much capacity this will give the plant (and what it will be used for) is not yet known.
[Source: Automotive News - subs. req'd]
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Reader Comments (Page 1 of 1)
Avinash machado 11:27AM (3/23/2009)
Guess Senator Shelby will be very happy.
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Tourian 11:39AM (3/23/2009)
Not as long as the D3 continue to receive aid. He'll still have to appear outraged.
skicat 11:50AM (3/23/2009)
Shelby's a moron.
dukeisduke 1:18PM (3/23/2009)
As he's wailing on the U.S. automakers. Jerk.
jamie 5:00PM (3/23/2009)
The Feds should immediately mandate a minimum of 35 mpg for all imports.
That ought to hit Daimler and Gov Shelby where it hurts.
Santosh Tiwari 11:28AM (3/23/2009)
/me hugs Diamler (again).
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artandcolour 11:50AM (3/23/2009)
Shelby would pay them out of his own pocket if it meant death to Detroit. what a friggin loser. he must be smoking a cigarette right about now, enjoying the after glow.
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Len_A 12:22PM (3/23/2009)
Shelby is an idiot. Considering that two D3 suppliers, Delphi and Inteva, supply 100% of the interiors for every vehicle Mercedes-Benz builds in Alabama, and that Alabama plant is the sole world-wide source for those vehicles, Shelby had better hope the D3 make it. Otherwise, those two suppliers, and Lear, go down and M-B will have a hell of a time getting either Johnson Controls or Magna to step in and pick up the pieces. The system of current parts suppliers, that transplants like M-B uses, exists only as long as the D3 exist to supply 75% of the volume of business.
Shelby and the rest of the congressional gas bags haven't got a clue.
Sea Urchin 3:26PM (3/23/2009)
Hey i agree, Shelby is the reason D3 are dying. I assume Cobalt, Focus and Caliber are side issues.
I bet if it wasn't for Shelby Chrysler's interiors would have been better and GM actually would be able to make hybrids...and make money. WOW Those Republicans are real evildoers.
k.w.a 12:01PM (3/23/2009)
from an aerial view the shape of each row looks very inappropriate
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the vegas style guy 12:23PM (3/23/2009)
"Vulgarity has its uses."
Butterfield 8
superman211 12:32PM (3/23/2009)
No, you just have a sick mind. Or you are lacking and wishing you had something.
UltimoDragon 12:53PM (3/23/2009)
Richard Shelby (one of the senators pathetically representing my state) still isn't sure if President Obama is a natural born U.S. citizen. Yes, he IS an idiot.
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imoore 1:30PM (3/23/2009)
Don't be surprised when Shelby runs for President in 2012. Fellow senator Jeff Sessions will be his VP running mate. And Mercedes will be one of his biggest (if not the biggest) campaign supporters.
I'm not kidding. Nothing that happens in Alabama surprises me anymore, and I live here.
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Avinash machado 11:38PM (3/23/2009)
I think maybe Bobby Jindal might run instead.
Ray 2:36PM (3/24/2009)
Dick Shelby is just what his name implies!
-Ray
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