Mercedes-Benz USA expanding logistics footprint

by Inside Logistics Online Staff
SUV assembly in the Mercedes-Benz Tuscaloosa plant in Alabama.

Tuscaloosa, Alabama —Mercedes-Benz is building a new Global Logistics Center and a new after-sales North American hub in Bibb County, five miles from its plant in Tuscaloosa.

The Global Logistics Center will support worldwide logistics operations connected with products “Made in Tuscaloosa” and will supply oversea assembly plants with car-kits, where Mercedes-Benz produces vehicles for local markets.

Operations including brand new IT systems to support lean logistics processes in the new warehouse are scheduled to begin in 2019.

Additionally, Mercedes-Benz is consolidating the three existing after-sales warehouses at a new location. The new after-sales North American hub will be co-located with the new Global Logistics Center providing markets abroad with spare parts.

This allows the company to meet rising market demands amid the growing variety of models. The new hub is scheduled to start its operations at the end of 2020.

Aerial view Mercedes-Benz Tuscaloosa Plant

News of the logistics centre came alongside the company’s announcement that it will set up electric vehicle production in the United States. The company plans to produce EQ-branded SUV models at MBUSI (Mercedes-Benz U.S. International), its Tuscaloosa, Alabama facility.

In addition, a battery plant will also be built near the existing passenger-car plant ensuring availability of cutting-edge technology for future generations of Mercedes-Benz vehicles built in the U.S.

In total, Mercedes-Benz plans to invest $1 billion in the expansion of its industrial footprint in the region, most of which is slated for the electric initiative. It is expected that once completed these investments will create more than 600 additional jobs.

Final details of the plans are still being worked on in partnership with the State of Alabama.

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 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.