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Several car firms have shifted production to the United States in the past few years to avoid rising labour costs and exchange rates and Mercedes could be expanding that initiative. According to the latest reports out of Germany, Mercedes-Benz in mulling shifting some C-Class production to the U.S.

Mercedes is considering moving some production of its popular C-Class to the United States. If the plan is approved, production of the C-Class would shift from Sindelfingen, Germany to Tuscaloosa, Alabama, presumably at the company’s current M-Class facility. Mercedes’ is considering the shift due to lower wages rates at the Alabama plant. The move would also help safeguard Mercedes’ profits against unfavorable Dollar to Euro exchange rates.

Mercedes has yet to confirm the report – only saying that “there is neither a decision nor a recommendation on C-Class location politics” – but rumors suggest the 4 door, 2 door and wagon variants of the C-Class could be built at the Alabama plant, with the latter likely for export.

No word on when the shift might occur, but the Mercedes SL-Class would likely fill the C-Class' spot at the Sindelfingen plant.