Mercedes-Benz sets $4B investment in plant served by Norfolk Southern

Alabama was site of first M-B U.S. production facility 

(Photo: Alabama Department of Commerce)

Mercedes-Benz (MBG.DE) plans to invest $4 billion at its Alabama plant by 2030, site of the German automaker’s first U.S. production facility.

The company at a ceremony this week marked production of 5 million vehicles since it opened in 1997.

Vance, which employs 5,800 people, is one of two M-B plants served by Norfolk Southern (NYSE: NSC). The other is a van production facility located in North Charleston, S.C., among the railroad’s 26 auto assembly customers.

Vance exports about 60% of its annual output, according to the Alabama Department of Commerce.

“Thirty years ago, Mercedes-Benz changed the landscape of Alabama, and there is no doubt that Alabamians have changed the landscape of Mercedes-Benz,” said Gov. Kay Ivey, at the ceremony. “We are excited and proud to see that transformational partnership going strong into another decade as our state leads ingenuity and innovation in the global automotive industry.”

“This plant has built something remarkable, not just cars but a legacy,” said Michael Schiebe, Mercedes-Benz board member. “We believe in Tuscaloosa. We are staying, we are growing, we are committed.”

Honda, Hyundai and Mazda-Toyota followed with their own assembly plants in Alabama, where combined production exceeds 1 million vehicles per year.

Mercedes produces the GLE, GLS and GLE Coupe SUVs at Vance, along with AMG performance variants and the Mercedes-Maybach GLS. The all-electric EQE SUV, EQS SUV and Mercedes-Maybach EQS SUV are also assembled there. The GLC SUV is scheduled to join the factory’s assembly lines in the coming years. 

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Read more articles by Stuart Chirls here.

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Stuart Chirls

Stuart Chirls is a journalist who has covered the full breadth of railroads, intermodal, container shipping, ports, supply chain and logistics for Railway Age, the Journal of Commerce and IANA. He has also staffed at S&P, McGraw-Hill, United Business Media, Advance Media, Tribune Co., The New York Times Co., and worked in supply chain with BASF, the world's largest chemical producer. Reach him at stuartchirls@firecrown.com.