AM General hopes contract with Mercedes is sign of future

(AP) — Black Mercedes-Benz R-Class SUVs rolled down the AM General assembly line Tuesday interspersed with white MV-1 wheelchair-accessible vans as workers began producing vehicles for the German automaker, a scene company officials believe is a sign of hope for the northern Indiana auto plant where Hummer H2s once were made.

The military and commercial vehicle maker announced in January it had signed a multi-year contract to make Mercedes-Benz R-Class SUVs.

Mike Jackson, director of vehicle production forecasting for the IHS automotive group, said the contract is good for both companies because it allows Mercedes plant in Tuscaloosa, Alabama, to focus on higher-volume vehicles like the new SUV, the GLE Coupe, while providing work for the plant in Mishawaka.