As announced earlier this year, contract manufacturer AM General started production of the Mercedes-Benz R-Class at its plant in Mishawaka, Indiana.

The two companies signed a multi-year contract to move production of the R-Class to AM General’s Commercial Assembly Plant, where GM’s Hummer H2 was previously built. The R-Class was previously manufactured at Mercedes’ plant in Vance, Alabama.

By shifting production to AM General, Mercedes-Benz ensured it freed up capacity at its plant to increase production of the GLE, GL and GLE Coupe SUVs.

Known for the original Humvee, AM General is a manufacturer of tactical military vehicles for the US and other governments. The deal with Mercedes-Benz will help revive AM General’s business following the loss of the Hummer H2 contract. The agreement makes AM General the Mercedes’ first US-based contracted manufacturer.

AM General will build R-Class models exclusively for China, the only market where the vehicle is still on sale. “We take the needs of our Chinese customers seriously and, therefore, continue to produce the R-Class, which is very popular in China,” Jason Hoff, CEO of Mercedes-Benz U.S. International, said in a statement.

“We have found the ideal partner for this project with AM General. As a production specialist, AM General reliably fulfils the high requirements in terms of processes and especially quality,which globally apply to the production of Mercedes-Benz passenger cars,” the executive added.

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