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Mercedes-Benz Announces $40 Million Additional Investment

21 November 1998

Mercedes-Benz Announces $40 Million Additional Investment And 100 Jobs In Its Tuscaloosa County Plant

    TUSCALOOSA, Ala., Nov. 19 -- Mercedes-Benz U.S. International
(MBUSI) today announced an additional $40 million investment in its
$340 million plant.  MBUSI will also hire an additional 100 team members by
the first quarter of next year, for a total of over 1,700 team members.
    The investment is for future product enhancements, model variations and
preparation for supplemental M-Class assembly in Graz, Austria.  MBUSI will
also be adding more automation and team member assist devices in its body,
paint and assembly shops.  This will result in a reduction in the amount of
overtime work.
    By improving ergonomics and adding more conveyance and materials handling
automation in the body, paint and assembly shops, MBUSI will increase its
production efficiency, reduce the amount of employee overtime and further
improve the working conditions of its team members.
    "Annual investments like this are a normal part of the evolution of
company like ours as we prepare to produce more product variations of the
M-Class, and as we continue to experience growth and tremendous worldwide
demand for our product," said MBUSI President and CEO Andreas Renschler.
"Also, by identifying stations on the assembly line and work processes that
can be made more ergonomically friendly, we are continuing to invest in the
health and well-being of our team members.  Our team is our greatest asset."
    This investment is in addition to the $40 million production increase
announced in December 1997.  That investment, which included an additional
100,000 sq. ft. and more automation in the body, paint and assembly shops,
will enable the plant to increase this year's annual volume by 20 percent from
65,000 units to over 80,000 units in 1999.  To support this initiative,
MBUSI's in-state suppliers have collectively invested an additional $50
million in their facilities, over their original investment.
    Next year's $40 million investment will generate $200,000 in additional
education taxes for Tuscaloosa County.  This is in addition to the $1,000,000
in educational sales and property taxes already paid annually by MBUSI.
    To help meet worldwide demand, MBUSI will assemble supplemental M-Classes
at the Steyr-Daimler-Puch plant in Graz, Austria, for European markets.
Production will begin in mid-1999, with an annual capacity of up to 30,000
vehicles.  Supplemental assembly in Austria is a temporary solution to satisfy
immediate European demand.  Steyr-Daimler-Puch has a 20 year history producing
Mercedes-Benz vehicles (G-Wagen military off-road vehicle and the 4MATIC E-
Class).  It also produces DaimlerChrysler's Jeep Grand Cherokee and Eurostar
minivans.
    Currently 310 vehicles are coming off the line daily at the Tuscaloosa
plant with variations including:  a 2.3 liter 4 cylinder version exclusively
for Europe; left and right-hand drive 3.2 liter, V6 versions; and the new
ML430, V8 M-Class recently launched in North America.  The ML430 will launch
internationally next spring.