Mercedes to produce new vehicle at Alabama plant
Mercedes-Benz said Thursday it will add a "core segment" vehicle line to its plant in Tuscaloosa, Ala., by 2027. The factory now makes SUVs, and the company didn't specify which model would be added. The move follows President Trump’s increase in tariffs on steel, aluminum and foreign made auto parts, which the president says are geared toward boosting...
Mercedes-Benz said Thursday it will add a "core segment" vehicle line to its plant in Tuscaloosa, Ala., by 2027. The factory now makes SUVs, and the company didn't specify which model would be added.
The move follows President Trump’s increase in tariffs on steel, aluminum and foreign made auto parts, which the president says are geared toward boosting American manufacturing.
“We are getting even closer to the U.S. customer by localizing a core segment model in Tuscaloosa, strengthening our ties to the North American market where a range of Mercedes-Benz vehicles including the GLE and GLS models have their roots,” said Jason Hoff, CEO Mercedes-Benz North America, said in a release.
On Monday, the Trump administration said it would allow automakers to apply for 15 percent price offsets in the first year of the tariffs and a 10 percent offset in the second year, in hopes of hoisting the domestic production of automobiles.
Twenty-five percent tariffs on imported automobiles and auto parts are scheduled to go into effect Saturday.
Mercedes-Benz and others have heeded the White House’s warning about an increase in the cost of foreign auto part production. BMW, Stellantis, Toyota, Kia, Honda and Hyundai also plan to move more vehicle manufacturing to the U.S. according to a White House release.
“Tuscaloosa has been a key hub for Mercedes-Benz vehicles for almost 30 years. It’s a natural step to bring a further model to Alabama as part of a strategy to deepen our commitment to the United States, a market, which has been our home for more than a century,” said Ola Källenius, chair of the board of management of Mercedes-Benz Group AG, in a statement.
The company said that since 1997, more than 4.5 million vehicles have left the Tuscaloosa plant, with around 260,000 vehicles rolling off the line in 2024 alone. The Tuscaloosa plant is home to the GLE, GLS, GLE Coupe, and Mercedes-Maybach GLS as well as the EQE SUV, EQS SUV, and Mercedes-Maybach EQS SUV for all global markets.
