Daimler is looking to expand their vehicle production in the U.S. as American automakers are facing much pressure due to slow demand in the country. The company is looking to spend $1 billion to expand their Mercedes Benz assembly plant near Tuscaloosa, Alabama where batteries and electric sport utility vehicles will be produced to compete with Tesla’s models.
The company has recorded sales of 17.55 million vehicles last year while many U.S. automakers are temporarily idling factories and laying off thousands of employees as demand has been decreasing for their luxury cars and sedans. Global automakers have also been under a lot of pressure since U.S. President Donald Trump’s bid to curb imports and hire more employees to build cars and trucks in the country. Competition has been intensified for market share in the world’s most profitable vehicle market as the increase in investments are looking to expand American vehicle production capacity.