Daimler to build $500 million South Carolina plant

Daimler to build $500 million South Carolina plant

The plant will produce Mercedes-Benz Sprinter commercial vans.

Daimler AG announced Friday that it will invest $500 million to construct an assembly plant in South Carolina, the Associated Press reports. The German car manufacturer said the plant would produce the Mercedes Benz Sprinter commercial vans and was expected to bring 1,300 new jobs to the state.

Currently, the process for getting these vans to the United States is mired in red tape and costly import regulations. According to the article, due to high import duties, Sprinter vans are currently manufactured in Germany then disassembled and shipped to North Charleston, South Carolina, where they are are reassembled for sale in the U.S.

But with the Sprinter’s U.S. sales at $26,000, second only to Germany, the AP reports, this unwieldy process no longer makes sense for the auto manufacturer.

“Given the future growth in the North American market, it simply does not make sense to supply customers with imported vehicles,” said Volker Mornhinweg, the head of Mercedes-Benz Vans, at a news conference, according to the AP.

Mercedes-Benz’s Sprinter commercial van is built to haul either cargo or people, with seating for up to 12 individuals. It is one of the few commercial vans in its class to offer a four-wheel drive option. In a review of the 2015 model, Car and Driver noted that if you “need to move a lot of people or cargo through inclement weather or into inhospitable environs… the Sprinter 4×4 is pretty much your only choice.”

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