New Mercedes-Benz model could be built at Alabama plant

Mercedes-Benz is poised to announce that it could add a new vehicle to the production line-up at its Vance factory, the plant's boss said Friday.

Markus Schaefer, president of Mercedes-Benz U.S. International, said an official announcement about a new production model could come in days, though he provided no other details during a presentation to auto industry executives. His comments follow published reports saying the automaker will make a smaller M-Class to compete with the BMW X6 crossover vehicle. 

  "We want more stability," Schaefer told members of the Alabama Automotive Manufacturers Association on Friday. "We do not want to have one SUV here, which is really depending on fuel prices and success. We want to have more cars here." 

  Felyicia Jerald, a spokeswoman at the Vance plant, declined to say anything further about the possible addition. 

  A new M-Class variant would be the fifth model produced at the Vance factory, joining the flagship M-Class sport utility, the GL-Class full-sized SUV and R-Class crossover. Production of the C-Class sedan also is set to arrive there in time for a 2014 launch. 

  Automotive News Europe, citing unidentified company sources, reported last month that the German automaker had decided to produce a coupe-styled version of the M-Class that could be built in Vance.

On Friday, Schaefer also said Mercedes is targeting higher production levels at the Vance plant, which opened in 1997. 

  He said annual capacity could be lifted to as many as 250,000 cars, compared to 160,000 today. Last year, the plant produced slightly more than 125,000 vehicles. The Alabama operation's initial production ceiling was 60,000 to 65,000. 

  He said he hopes to see the Alabama operation generate $8 billion in annual revenue and create 1,400 new jobs in the next few years. The jobs figure is higher by 400 than previously announced, which could be a result of the model not yet announced. Mercedes has said 1,000 jobs would be created by the introduction of the C-Class. 

  Schaefer also said in his speech that Mercedes is planning to announce that several new suppliers are locating in Alabama as part of its initiatives. 

  The presentation was the key luncheon address at the Alabama Automotive Manufacturers Association's quarterly meeting on Friday. Steve Sewell, a AAMA board member and executive vice president of Economic Development Partnership of Alabama, said the organization provides networking opportunities for automotive companies in Alabama. 

The AAMA has 400 members, which has exceeded expectations, Sewell said in an interview. He said Alabama assembly plants operated by Mercedes, Honda and Hyundai are helping drive the state's automotive industry. 

  "They're also the companies that can provide the understanding of the issues that are most important to both them and their suppliers," he said. "So that gives us focus as an organization." 

  He said the organization sees opportunity for Alabama over the next 10 years is to attract additional suppliers to the state "to fill gaps in the supply chain."