FRANKFURT: German luxury car maker Daimler said on Wednesday that it will manufacture its popular C Class automobiles at a US plant in Tuscaloosa, Alabama.

The move, against which Daimler workers protested on Tuesday, does not signal a major shift in Daimler's strategy, chief executive Dieter Zetsche said in a statement.

"Germany is and remains the heart of our production network," he said.

The group also plans to shift work on its SL sport models to the core southwestern German plant in Sindelfingen, where workers had demonstrated, and to focus on making C Class cars for the European market in northern Bremen.

The move to Tuscaloosa "is essential for strategic and operational reasons, so that Mercedes-Benz remains competitive and can fully utilize future growth opportunities," Zetsche said.

Global auto makers have increasingly sought to produce cars in or near major markets to limit foreign exchange effects and take advantage of lower costs.

The shift in production of the SL roadster to Sindelfingen is expected to result in a rise in production volumes of about 20 percent from 2014, the company said.