German automaker Mercedes-Benz AG confirmed Monday it will build a factory in the United States to make a $20,000-$30,000 sport utility vehicle, but has yet to pick a site.
It will be two to three months before officials pick a site, and Mercedes officials said the list of states where the plant might be located is longer than the list of those not being considered. Officials also wouldn't rule out the possibility of using an existing U.S. auto plant.Helmut Werner, vice chairman and chief operating officer of the company, gave no specifics except to say North and South Carolina have some advantage because another Daimler Benz AG subsidiary, Freightliner, already has three North Carolina plants.
Werner denied that Monday's announcement was an attempt to start a bidding war by states.
"We would not have to have this press meeting to do that," Werner said. "We have had many phone calls already."
After announcing a site, Werner said the company hopes to start site work by year's end and start building a sport utility vehicle in 1997. The total project cost is expected to be about $650 million.
He said the $300 million plant is expected to employ about 1,500 workers by decade's end. Annual production is expected to be about 60,000, including 40,000 for export to Europe.
The vehicle will sell for $20,000-$30,000.
Werner said the U.S.-produced vehicle will be new, instead of a version of the Gelandewagen 300 GE, a four-wheel drive vehicle sold in Europe and Japan. It has a six-cylinder engine, antilock brakes and four-speed automatic transmission.
Mercedes will become the second German automaker to build vehicles in the United States. BMW AG is building a $300 million plant in Greer, S.C.