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Daimler AG Announces Alabama Expansion of Mercedes-Benz Manufacturing Operations

German automaker Daimler AG plans to invest $1 billion to expand its Mercedes-Benz operations throughout Alabama. The investment will allow the company to manufacture electric SUVs under Mercedes’ EQ sub-brand at the Alabama plant by the start of the next decade.

Mercedes-Benz Expanding in Alabama

In Numbers

  • Vance, AL
  • 1,588,454 s.f.
    Square Footage
  • 30 months

More than 600 new jobs will be created as part of Daimler’s plan, which includes building a facility near the Tuscaloosa plant in 2018 for its new global logistics center and new after-sales North American hub. Mercedes-Benz will also build a battery plant to support electric vehicles for local demand and export.


“With the addition of electric SUVs to our future fleet, we will provide discerning drivers with a new, high-quality automotive option,” said Markus Schaefer, member of the Divisional Board of Mercedes-Benz Cars, Production and Supply Chain Management.


“As you know Mercedes invented the car, but now we are going to reinvent mobility. That is why today it is about celebrating the past and electrifying the future,” he continued.


The announcement was made as part of the Alabama plant’s 20th anniversary. The projects in the investment will add about 2 million s.f. to the company’s operation in the region.


As the first phase of this investment, Gray Construction was selected to design and build the 680,000 s.f. global logistics parts consolidation center (PCC), which is expected to be operational in 2019.


“We are thrilled to be partnering with Daimler,” said Stephen Gray, president and CEO of Gray Construction. “This investment will not only have a tremendous impact on Alabama, but it will also encourage advancement of the automotive industry.”


About Mercedes-Benz U.S. International, Inc.


MBUSI – located in Tuscaloosa County, Alabama – is the production location for the GLE, GLS and GLE Coupe SUVs around the world, as well as the C-Class sedan for North America. In 2016, the plant produced more than 310,000 vehicles. MBUSI currently employs more than 3,700 team members and supports 7,000+ jobs on the approximately 1,000-acre site. In September 2015, MBUSI announced a $1.3-billion plant expansion and new jobs to pave the way for production of future SUVs. The expansion makes plant Tuscaloosa one of the “smartest” automotive facilities in the world.


About Daimler in the U.S.                                             


Daimler has been firmly established in the United States for decades. As an employer, exporter, and good corporate citizen, the company provides billions of dollars direct and indirect support to the U.S. economy. Daimler directly employs around 22,000 people in the United States and indirectly supports an estimated 70,000 additional jobs across the country. The company primarily produces passenger cars and commercial vehicles in the United States, but is also represented with Daimler Financial Services, car2go and moovel as well as several Research and Development locations in the United States.


About Gray Construction


Gray Construction is a nationally-ranked engineering, architecture and construction firm with nearly 60 years of experience in manufacturing, automotive, food and beverage, distribution and retail facility construction. Currently, Gray has several large projects that are underway or recently completed including: a Mercedes-Benz manufacturing facility in Vance, Ala.; a manufacturing facility for automotive supplier MöllerTech USA, LLC in Woodstock, Ala.; a foundry and mechanical machining building for Fritz Winter North America LP in Franklin, Ky.; and a manufacturing facility for Italian paper product manufacturer Sofidel in Circleville, Ohio.


If you have manufacturing plant construction needs, please contact Phil Seale, executive vice president, manufacturing at Or, contact Jeff Bischoff, executive vice president, business development at

"We are thrilled to be partnering with Daimler. This investment will not only have a tremendous impact on Alabama, but it will also encourage advancement of the automotive industry."
Stephen Gray, President & Chief Executive Officer, Gray, Inc.
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