#Tuscaloosa

Mercedes-Benz is reportedly considering moving C-Class production out of America to make room on its Alabama assembly line for more high-margin utility vehicles. Despite being the brand’s best-selling sedan in the United States, Mercedes knows it has to acknowledge the public’s growing propensity for luxurious light trucks.

While ignoring the present doesn’t seem like the wisest of business decisions, the market’s current trajectory is no secret. People want crossovers and SUVs and it looks as though Benz will happily provide them, even if it means icing out the still-popular C-Class before the end of next year.

Mercedes-Benz is investing $1 billion into its Tuscaloosa, Alabama, assembly operations in order to facilitate the production of its first EQ-branded SUVs in 2020. The investment, timed to roughly coincide with the beginning of Mercedes-Benz ML production in Alabama, is expected to result in the hiring of another 600 employees.

In the near term, Mercedes-Benz has been open with its doubts regarding the profitability of pure electric vehicles. Evidently, the long-term view is different. And it probably doesn’t hurt to pour more money into a U.S. operations hub that accounts for nearly half the vehicles sold by the automaker in America.

Daimler announced Friday that it would spend $1.3 billion in its Tuscaloosa, Alabama factory to upgrade its equipment and technology, and to also add a 1.3 million square-foot body shop.

The investment will also add 300 jobs to the plant, which produces the C-Class and GL-class — and perhaps GLT? — and work is reportedly already underway. The plant has been open since 1997 and has predominantly produced SUVs, although its future products are less clear.

Mercedes is reportedly preparing to make a truck, based on the Nissan Navara, to release in global markets. In Frankfurt, the updated Nissan Navara and related Renault Alaskan made their debuts, although only the Navara will have a life in the U.S. — probably as the next Frontier. Mercedes would need to produce its pickups in the NAFTA zone to avoid a Chicken Tax if they were to sell one here. (Sprinter doesn’t care.)

Just as in Chattanooga, Tenn., the United Auto Workers has established a local in Tuscaloosa, Ala. for those working on the floor of the Daimler AG-owned MBUSI plant in nearby Vance.

Though Daimler senior management has said repeatedly that the decision to organize the MBUSI plant in Tuscaloosa, Ala. was up to the workers on the floor, Daimler works council boss Michael Brecht is heading there in a few weeks to explore the possibility with the United Auto Workers.

The National Labor Relations Board will conduct a hearing to discuss allegations regarding management conduct at Mercedes-Benz’s Vance, Alabama plant. The reports filed with the Board allege that Mercedes violated worker’s rights by forbidding discussion of unions during working hours, as well as threatening termination of employees that solicited for the union.