According to a statement made by a company spokeswoman on Monday, the German automobile manufacturer Mercedes-Benz (MBGn.DE) has asked for tax incentives under the Inflation Reduction Act (IRA) for future projects that might take place at two of its factories in the United States.
According to the statement made by the spokesman for the organization, “We have decided to participate in the application process for production-related tax relief” under the IRA for the facilities located in Alabama and South Carolina.
Mercedes reportedly wants to build fully electric delivery vans and medium-sized luxury transporters on the new VAN.EA electric platform at its plant in South Carolina. This information was reported by the German daily Handelsblatt, which cited several sources in support of its claim. Mercedes plans to begin production of the all-electric GLC in 2026 at its Alabama plant, which would require expansion.
According to Handelsblatt, a final decision is anticipated to be made either later this year or early in the following year. Mercedes declined to comment when asked about the manufacturing schedule for the electrified GLS.
The Investment and Reinvestment Act (IRA) is the primary incentive and investment program the United States federal government uses to convert the economy to climate-friendly manufacturing. This transition includes pushing automobile manufacturers to manufacture electric vehicles in the United States.
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