By ANDY OBER
Inside Indiana Business

MISHAWAKA — South Bend-based AM General LLC celebrated the beginning of Mercedes-Benz production Tuesday, Aug. 11, at its Mishawaka plant in what it calls a historic day for the company.

The contract, announced in January, involves the production of the luxury car maker’s R-class sport utility vehicle. President of Commercial Business Howard Glaser said the plant’s advanced technology and “stable and experienced work force” attracted the automaker. He says the new production involves millions of dollars in investment and hundreds of new workers.

Mercedes-Benz is moving production from an Alabama facility to AM General’s Mishawaka Commercial Assembly Plant. The company said increased demand is the reason for the move.

Glaser said the plant has been in pre-production trials. The company marked the beginning of production with a launch ceremony Tuesday. Governor Mike Pence and representatives from Mercedes took part in the event.

The multi-year agreement makes AM General Mercedes-Benz’s first only contract manufacturing operator in the United States. Glaser said the new production serves as a “model for future growth,” as other automakers see how AM General can build custom vehicles.

The contract marks the latest significant deal for the manufacturer. In March, it detailed a $32 million foreign sales military contract involving 160 high mobility, multi-purpose wheeled vehicles. The U.S. Department of Defense boosted a major contract with AM General in May. The $245 million deal, which involves more than 2,000 humvees for the Iraqi government, was increased by $16 million.

In June, the company announced a $9.5 million contract to manufacture 50 humvees for the U.S. Army. Last month, it secured a $373 million military contract involving Humvee sales to multiple foreign governments.