Mercedes-Benz GLB factory that supplies Australia is shutting down, but new-generation SUV looms

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The joint-venture production plant shared with Nissan is closing, but Mercedes-Benz could be cooking up a new GLB for Australia elsewhere.


Ilana Cohen
Mercedes-Benz GLB factory that supplies Australia is shutting down, but new-generation SUV looms

The closure of the factory that builds the Mercedes-Benz GLB for Australia – the Cooperation Manufacturing Plant Aguascalientes (COMPAS) in Mexico – may not impact stock in local showrooms, as the German car giant ramps up work on the next-generation model.

Although the facility shared with Nissan is earmarked for closure early next year, overseas reports have spotted a second-generation GLB testing in Europe.

Mercedes-Benz is yet to confirm the new GLB will reach Australia, but given the popularity of SUVs in the local market, it's a strong chance to continue Down Under.

The GLB occupies a unique market position as a mid-size luxury SUV with seven seats, something compatriots BMW and Audi do not offer.

Mercedes-Benz GLB factory that supplies Australia is shutting down, but new-generation SUV looms
Image: Nissan

If Mercedes-Benz Australia elects to continue the nameplate, production will likely shift to another facility.

With the existing car built on the aging MFA2 platform – which also underpins the A-Class, B-Class, GLA, and CLA, and EQA and EQB SUVs – the new-generation GLB is reportedly shifting to the more modern Mercedes-Benz Modular Architecture (MMA).

The MMA platform debuted this year with the third-generation CLA, due to arrive in Australia in 2026, and is produced in Hungary, Germany, and China.

Mercedes-Benz GLB factory that supplies Australia is shutting down, but new-generation SUV looms

With Mercedes testing the new GLB under camouflage, the next model could break cover later this year.

However, Mercedes-Benz Australia would not confirm any changes to the GLB, telling Drive it does not "comment on future production planning”.

“In general, as customer and market requirements are constantly changing, we regularly review our portfolio and products and adapt them to changing requirements as needed,” a Mercedes-Benz Australia spokesperson said.

Mercedes-Benz GLB factory that supplies Australia is shutting down, but new-generation SUV looms
Image: Nissan

So far this year, the GLB is one of Mercedes-Benz Australia's least popular non-electric SUVs, finding 566 new homes to the end of June.

The related GLA meanwhile, has amassed a 1667 total over the same period, while the GLC (coupe and wagon) remains the brand's most popular high-rider with 2950 combined sales so far this year.

The GLB first came to Australia in 2019, and is currently available in three trims – the GLB200 (from $72,900 before on-road costs), the GLB250 ($84,100), and AMG-tuned GLB35 ($102,900).

Ilana Cohen

Ilana is a Melbourne-based journalist who was previously a copywriter in the Big Apple. Having moved to Melbourne for her Master of Journalism, she has written articles about food, farm machinery, fashion, and now the fast and furious. Her dream car has been a Mini Cooper since the fifth grade, eyeing its style and petite size.

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