Daimler Ponders More Models for Alabama Plant

Daimler AG might add a third model at its factory in Tuscaloosa, Ala., to help bolster sales and profitability in North America.

Chief Financial Officer Bodo Uebber tells reporters in New York City that one or more additional models would be possible at the plant, which began as an SUV facility in 1997 and will add C-Class sedan production next year.

Uebber adds that Daimler has made no decision about an expanded role for the Alabama plant. But Bloomberg News points out that expanding production in the U.S. would help bolster Daimler's profitability by reducing transportation costs and unfavorable swings in currency exchange rates.

Uebber also signals a new optimism at Daimler about electric vehicles. He opines that the company should expand its ties with EV maker Tesla Motors Inc., in which it holds a 4.3% stake. Tesla currently supplies batteries for the electric version of Daimler's Smart ForTwo city car and Mercedes-Benz A-Class small sedan.