Mercedes-Benz's parent automaker, Daimler, said the US will no longer be home to production on Friday. As the automaker looks to cut losses, the sedan will exit production at the automaker's assembly plant in Tuscaloosa, Alabama.
Instead, the US plant will exclusively build SUVs for Mercedes-Benz. A Daimler spokesperson confirmed the decision with Roadshow and added, "A major factor behind this measure is that the Tuscaloosa plant is preparing to integrate the upcoming electric SUV models from the EQ product and technology brand into its operations. This will require certain construction projects."
The C-Class will continue production in Germany, South Africa and China going forward.
Reuters reported the production changes extend to Mexico, where the smaller will cease production. At the automaker's plant in Aguascalientes, the workforce will instead focus on the small luxury SUV. A-Class production will also continue in Germany.
The production shuffling comes as Daimler posted better than expected quarter two financial figures amid the coronavirus pandemic. However, Mercedes-Benz's sedan and van lineup clocked a $1.3 billion loss. As previously reported, Mercedes-Benz will take a closer look at some of its slower-selling variants within the C-Class and E-Class lineups. Coupes and convertibles, which aren't nearly as popular as the sedans, in the name of cost savings.