Related: Mercedes-Benz Expands Van Offerings, Adds Ship-Thru
Mercedes-Benz Breaks Ground on $500M Van Plant
Mercedes-Benz will shift production of vans it sells in the U.S. and Canada to North Charleston, S.C., by the end of the decade with a plant that nearly triples its existing manufacturing footprint.

South Carolina Gov. Nikki Haley (right) presents a gift to Volker Mornhinweg, Head of Mercedes-Benz Vans. Photo: Paul Clinton

South Carolina Gov. Nikki Haley (right) presents a gift to Volker Mornhinweg, Head of Mercedes-Benz Vans. Photo: Paul Clinton
Mercedes-Benz will shift production of vans it sells in the U.S. and Canada to North Charleston, S.C., by the end of the decade with a plant that nearly triples its existing manufacturing footprint.
Surrounded by dignitaries such as Sen. Lindsay Graham (R-SC) and Gov. Nikki Haley, Mercedes-Benz and Daimler leaders celebrated the start of construction at a July 27 ceremony. They also provided more details about their plans to stop importing the vans from Dusseldorf in a complex assembly process to avoid the "chicken tax" assessed on trucks built in Europe. The tax assesses a 25% tariff on the vehicles, Graham said.
Instead, Mercedes-Benz will invest $500 million to expand its existing assembly plant to 1.1-million square feet from the 409,000-square-foot space. Mercedes-Benz will also construct a marshalling yard for finished vehicles of 2.8-million square feet.
The plant will also help Mercedes-Benz meet increasing demand for its full-size Sprinter and mid-size Metris models. The company sold about 29,800 vans in 2015, a 16% increase over the prior year, said Bernie Glaser, vice president and managing director of Mercedes-Benz Vans.
"Over the last few years, we've seen very steady growth [in van sales]," said Volker Mornhinweg, head of Mercedes-Benz Vans. "This is what we're counting on in the future."
The expanded plant will create 1,300 new jobs at the plant and 400 new jobs at local suppliers. Auto Truck Group and Knapheide will build upfitting facilities near the facility.
The plant will simplify production of the Sprinter and Metris. Since 2006, Mercedes-Benz has been using a semi-knock-down process of building the vans in Germany, then disassembling them for shipment through the Charleston port. Van bodies, engine and powertrain kits, and other parts arrive separately and must be reassembled before being shipped to customers.
Elected South Carolina leaders praised Mercedes-Benz for investing in the region during remarks to a group of media members, plant employees, and company associates. During a light-hearted moment, North Charleston Mayor Keith Summey urged Mercedes-Benz to build a pickup truck at the plant.
"This is the Deep South," Summey said. "I need for you to develop a line for a pickup truck."
More Operations

Top 50 Executive Fleets
It is that time of year again! Time for the 2026 list of the Top 50 Executive Fleets, presented by Automotive Fleet and Volvo as part of its annual Fleet 500. Download now to see this year's list of companies!
Read More →
Gary Van Orden Retires After Nearly Four Decades in Commercial Fleet
From answering customer calls at Ford Motor Company to leading fleet sales across multiple OEMs and a fleet management company, Gary Van Orden's career reflects nearly four decades of leadership in commercial fleet.
Read More →
How Stellantis Plans to Get Ahead of Fleet Downtime
Vehicle acquisition may grab the headlines, but fleet uptime increasingly determines operating success. Darren Bradshaw of Mopar North America gives the details.
Read More →
Hyundai Releases 2027 Commercial Program Incentives
The 2027 Model Year "Fleet Street Incentives" are available to commercial and government fleets.
Read More →
It's All Downhill from Here! Fleet Industry Raises $22,000 for Skilled Trades Scholarships
Work Truck’s Lauren Fletcher and Automotive Fleet’s Chris Brown turned a friendly racing rivalry into $22,000 for automotive technology and skilled trades scholarships.
Read More →The Top 300 Commercial Fleets
The Top 300 Commercial Fleets: See the List
Read More →
Your Local Dealer Knows More Than You Think
Your local dealer can provide an information advantage that extends well beyond courtesy deliveries.
Read More →
Fleet Meets: Austin Schutte
Here are some industry insights, personal touches, and words of advice from the CEO and Founder of Anew Solutions.
Read More →Soap Box Derby Challenge: What’s Powering Team Brown
The car is coming together, the students are solving real build problems, and the fleet industry is helping push Team Brown toward the starting line.
Read More →
