R Class Mercedes Benz

Did you know the Mercedes-Benz R-class is still around? Launched in early 2005, it didn’t come close to meeting its sales targets; in its best year, some 20, 000 were made. By 2011, U.S. sales were down to just over 2000, and in early 2012, Mercedes-Benz yanked it from the U.S. market. All other global markets followed in 2013—except for China. In the Far East, the R-class still enjoys a loyal following.

Daimler’s problem is that it desperately needs space in its North American assembly plant, where the R-class is currently built. “With the introduction of the new GLE coupe and the ongoing strong demand for SUVs, Plant Tuscaloosa needs all available production capacities for this segment, ” says Jason Hoff, CEO of Mercedes-Benz U.S. International. Moving the R-class out of Tuscaloosa opens up more production capacity for the M-class, soon to be rechristened the GLE; the GLE-class coupe; and the GL-class.

To satisfy China’s R-class customers, Mercedes is turning to contract manufacturer AM General, in South Bend, Indiana. That’s the maker of the HMMWV, a.k.a. the Hummer. Considering that the production tools have to be moved and an in-place supplier network is needed, AM General seemed a better choice than moving production across the Pacific to a Chinese site.