FRANKFURT -- Daimler's Mercedes-Benz unit "sees value" in having more suppliers in the U.S. state of Alabama, where it has a factory in Tuscaloosa, the automaker said.
Daimler said having more local suppliers increased overall flexibility, reduced transport times and improved manufacturing and logistics costs.
"Overall, this results in considerably increased efficiency," the company said in a statement on Tuesday.
Two years ago, the company unveiled plans to invest another $1.3 billion to expand SUV production at the Tuscaloosa factory.
"These are exciting times for our Alabama facility as we prepare to take on this new challenge to build the next generation of SUVs," Jason Hoff, President and CEO of Mercedes-Benz US International, said in the statement following discussions with selected suppliers last week.
Daimler's comments come after renewed focus on Germany's trade surplus with the U.S.
On Tuesday, U.S. President Donald Trump took to Twitter to attack Germany partly for its trade policies, flagging the United States' "massive trade deficit with Germany."
Both Mercedes and BMW have factories in the U.S. where they build higher-margin SUVs for export to Asia and Europe.
Trump in January had warned German car companies he would impose a border tax of 35 percent on vehicles imported to the U.S. market, a plan that drew sharp rebukes from Berlin and hit the automakers' shares.