Mercedes-BMW AG plans to sell a total of 2.7 million vehicles in the US this year, a deal the German automaker said would be the biggest ever for a German automaking company.

The sale of the automaker’s Mercedes-AMG division and other businesses, including its Mercedes-Porsche brand, will help to fund its ambitious plans to grow its US footprint and build a new plant in Kentucky, where it already has about 5,000 employees.

The deal also comes on the heels of Mercedes-Renault AG’s $3.7-billion sale of its French operations to the Chinese automaker Geely.

The two automakers will merge into a unit in 2020 that will focus on building and marketing electric cars and on the manufacturing of Mercedes’ luxury models.

The new unit will also help Mercedes diversify its products into the luxury car segment.

Mercedes-Amory CEO Matthias Büttner said the merger will strengthen the company’s position in the luxury and sporty segments.

The merger of the two companies will help Mercedes in its efforts to build a second plant in the state of Kentucky, Bürtner said.

The move is the latest in a string of acquisitions by Mercedes that have created new opportunities for the German manufacturer.

The $1.6-billion merger of Mercedes and Peugeot in the U.K. in 2013 paved the way for the creation of a new carmaker, which later merged with Daimler AG to become Mercedes-Daimler.

In 2014, the German company merged with Porsche to create a new brand.

Mercedes-Benz’s U.S. operations include the American plant that produces the Audi A6 SUV, the A6 crossover SUV and the new Mercedes-Benzes.

The plant is also the home of Mercedes vehicles.