Build the C-class in Alabama? Mercedes will decide by January

Daimler AG will decide by January whether to shift some C-class passenger-car production to its U.S. factory in Vance, Ala.

“It's no secret that a decision for the new C-class has to be made in the near future,” and that includes expansion of production, Daimler CEO Dieter Zetsche said Thursday during a briefing with journalists.

Zetsche said the decision would be based on currency rates and whether the dollar will remain weak against the euro.

U.S. production of the C-class, the biggest-selling Mercedes-Benz vehicle in the United States, would help shield Daimler against further currency swings. Reports from Germany say Daimler would build about 80,000 C-class cars annually in Alabama.

Moving the C-class to Vance would require an additional investment to expand the factory and for new tooling, said a spokeswoman for the company. The next-generation C-class is due is 2013.

The Vance factory builds the M-, GL- and R-class models. The plant has built 83,461 units to date in 2009. For all of 2008, it built 152,500.

By Diana T. Kurylko- Automotive News