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Car maker committed to buying more American Parts for Alabama Plant

Daimler AG the German company that makes Mercedes-Benz cars daid they would increated the number of parts it uses from American-based supplier factories.

May 31, 2017

Daimler AG, the maker of Mercedes-Benz cars, responded to continued pressure from the Trump administration on auto makers, saying Tuesday it is increasing the amount of parts it uses from American-based supplier factories.

The announcement comes shortly after reports emerged of President Donald Trump highlighting the German car maker's role in a $15.4 billion automotive trade deficit with Germany. Daimler, BMW AG and Volkswagen AG import cars to the U.S. from several markets, including Germany and Mexico, but also build models in several southern states.

Mercedes makes certain models in Alabama and told its parts makers in a recent meeting that it "sees value" in using more suppliers with locations in the state as it continues to invest in its Tuscaloosa factory. That plant produces the GLE and GLS SUVs, along with the C-Class sedan, for the North American market.

Mr. Trump has highlighted the auto industry in his broader "America First" push during the 2016 presidential campaign and since taking office, criticizing both domestic and foreign car companies for building vehicles in Mexico and other markets and then selling them in the U.S. He has on several occasions proposed a border tax, prompting many auto makers to ramp up commitments to U.S. jobs and investment, and even change course on Mexican production. Ford Motor Co. shelved plans for a new factory south of the U.S. border.

Mr. Trump called out Toyota Motor Corp. twice earlier this year for plans to build a $1 billion plant in Guanajuato, Mexico. Soon after, the Japanese auto maker announced it would invest $1.3 billion in its Camry sedan plant in Kentucky and consider adding more U.S. capacity.

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Car maker committed to buying more American Parts for Alabama Plant
Car maker committed to buying more American Parts for Alabama Plant