AM General and Mercedes-Benz U.S. International, Inc., announced that Mercedes-Benz selected AM General to manufacture the Mercedes-Benz R-Class luxury vehicle at AM General’s world-class 675,000 square-foot Commercial Assembly Plant in Mishawaka, Indiana.

According to the firm, because of increasing demand for its Sport Utility Vehicles and the need for greater production capacity in the U.S, Mercedes-Benz is moving production of the R-Class from its Tuscaloosa, Alabama, plant to AM General’s Commercial Assembly Plant in Mishawaka.

Under the multi-year agreement, AM General becomes Mercedes-Benz’s first and only contract manufacturing operator in the U.S. AM General anticipates R-Class vehicles will start rolling off its production lines this summer and will hire and train hundreds of new workers in order to prepare for R-class production.

“AM General is pleased to have been selected by Mercedes-Benz to build this vehicle at our world-class commercial vehicle facility in Mishawaka. We look forward to a long term relationship with Mercedes and expanding our services to the U.S. and global auto industry,” said Charlie Hall, President/CEO of AM General.

AM General’s Commercial Assembly Plant is a full service manufacturing and support facility that utilizes state-of-the-art robotic welding, painting and assembly techniques coupled with a lean manufacturing culture and highly skilled workforce to meet the requirements of its customers.

“This is yet another example of AM General’s deep and growing commitment to the cities of Mishawaka and South Bend, the State of Indiana and our highly skilled, hardworking employees,” Hall added.