TUSCALOOSA, Ala. – Mercedes-Benz, which launched Alabama’s auto industry nearly two decades ago, plans to sharply increase production at its Tuscaloosa County plant over the next two years, boosting annual capacity to 300,000 vehicles from the 185,000 produced there in 2013.

Daimler AG and Mercedes executives said at the Vance plant on Friday that the automaker plans to begin producing a compact sport utility vehicle called the ML Coupe in Alabama beginning next year. Earlier this year, Mercedes began mass production of the redesigned C-Class in Vance, the first time it has produced a sedan in Alabama.

Daimler Chairman Dieter Zetsche told auto journalists Friday that the SUV market is expected to outpace growth in the overall automotive market, according to a report in the Wall Street Journal. Production plans for the compact SUV had been previously announced.

“We’re calling 2015 the Year of the SUV for Mercedes and Tuscaloosa,” Zetsche said. “The market for these vehicles is only getting stronger.”

Mercedes has prepared for increased output in Alabama with a $2.4 billion investment that includes plans to increase its workforce in Vance by 1,400 employees. The automaker also added a $70 million logistics center on its campus.

In addition to the C-Class, the Alabama plant produces M-Class and GL-Class SUVs, along with the R-Class crossover.

Alabama Governor Robert Bentley, who was at the plant Friday, said Mercedes’ latest expansion in Tuscaloosa County is a tribute to both the state and its workers.

“When we see a business continuing to invest in Alabama and the people of Alabama, that’s the greatest compliment we could receive,” Bentley said. “Most jobs are created by existing businesses, and when businesses grow here, we don’t forget about them.”

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