Daimler Will Spend $1.3 Billion to Expand U.S. Plant

Daimler AG plans to invest $1.3 billion over an unspecified period to expand SUV/crossover capacity at its U.S. factory in Tuscaloosa, Ala.

The 8-year-old facility made 232,000 car and crossovers in 2014 and is expected to build more than 300,000 units this year. Daimler says the expansion will create 300 jobs and add production flexibility to the factory.

The Tuscaloosa plant also will prepared to produce hybrid versions of the company's next-generation SUVs. The expansion will include a 1.3 million-sq--ft body shop equipped to handle lightweight materials, new joining processes and modular manufacturing techniques.

The Tuscaloosa facility makes several crossover models for sale worldwide and, since last year, C-Class sedans for the American market.