Mercedes applies for tax relief for projects at two U.S. plants


FILE PHOTO: Machines are seen on a battery tray assembly line during a tour at the opening of a Mercedes-Benz electric vehicle Battery Factory, marking one of only seven locations producing batteries for their fully electric Mercedes-EQ models, in Woodstock, Alabama, U.S., March 15, 2022. REUTERS/Elijah Nouvelage/File Photo

BERLIN (Reuters) - German carmaker Mercedes-Benz has applied for tax breaks for potential projects at two of its U.S. plants under the Inflation Reduction Act (IRA), a company spokesperson said on Monday.

"We have decided to participate in the application process for production-related tax relief" under the IRA for the plants in Alabama and South Carolina, according to the spokesperson.

German daily Handelsblatt, citing several sources, reported that Mercedes is looking to expand its Alabama plant to produce the all-electric GLC from 2026 and 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.

A final decision is expected later this year or early next year, Handelsblatt reported. Mercedes did not want to comment on the production plan for the electric GLS.

The IRA is the US government's key incentive and investment programme to transition the economy to climate-friendly production, including by encouraging carmakers to manufacture electric vehicles in the United States.

(Reporting by Ilona Wissenbach, Writing by Miranda Murray, Editing by Friederike Heine)

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

   

Next In Tech News

How 'CoComelon' became a mass media juggernaut for preschoolers
Evolution of smartphone damage: From drips to drops
Are you tracking your health with a device? Here's what could happen with the data
US judge rejects SEC bid to sanction Elon Musk
What's really happening when you agree to a website's terms of service
Samsung ordered to pay $118 million for infringing Netlist patents
Sirius XM found liable in New York lawsuit over subscription cancellations
US Supreme Court tosses case involving securities fraud suit against Facebook
Amazon doubles down on AI startup Anthropic with another $4 billion
Factbox-Who are bankrupt Northvolt's creditors?

Others Also Read