And it won't come from America either.
If you listen to the news, you've probably heard about how "the Germans are bad, very bad" because they sell so many cars in the United States. Yes, German automakers like Mercedes and BMW do sell a large volume of vehicles in the US but do a little research and you'll find that many of these cars are built in the US, not Germany. Mercedes builds the GLE, GLS, and C-Class right here in Tuscaloosa, Alabama.
That's right, German cars aren't always built in Germany. In fact, some Mercedes models, like the upcoming A-Class, will actually be built in Mexico. Many automakers are focusing on moving production to global markets like China, but according to Automotive News, Mercedes has its sights set on another Asian country for production of the CLC crossover.
Shipments of Mercedes GLC models built in western India will arrive in the US starting next month. Mercedes is the latest automaker to use India as a car exporter after Ford starting building the EcoSport there in 2017. General Motors also builds cars in India but hasn't announced any plans to export them to the US.
The GLC will be assembled at Mercedes' plant in Pune, India. "The SUV GLC is in great demand worldwide," Mercedes-Benz USA spokesman Rob Moran said. "Therefore, Mercedes-Benz uses the capacities of its global production network on four continents. This also includes the Mercedes-Benz plant in Pune."
The GLC is currently built in Bremen, Germany, and the company has no plans to produce the crossover at its Alabama plant. This comes as a bit of a surprise given the current trade tensions, but Mercedes sees this as a major investment towards making India a viable car exporter. India also gives Mercedes the advantage of not being hit by the same 25% tariff as China. Mercedes' cost of shipping the GLC from India is higher than shipping it from Germany but it is offset by lower labor costs.
"India has been seen by the global automakers as a difficult place to establish a quality supply chain," Brian Johnson, managing director at Barclays Capital said. "This could very well be an effort to learn about India as an export hub."