Mercedes-Benz’s manufacturing plant in Tuscaloosa, Alabama, will build a new vehicle for the luxury automaker.
The Germany-based company announced the news on Thursday, saying the "localization" of the new "core segment" vehicle will occur by 2027.
The new vehicle will add to the numerous models that the Tuscaloosa plant already produces, such as the Mercedes-Benz, GLE, GLS, GLE Coupe, EQS SUV, and EQE SUV and the Mercedes-Maybach GLS and EQS SUV.
"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," Mercedes-Benz North America CEO Jason Hoff said in a statement.
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Mercedes-Benz touted the move as "deepening its U.S. footprint and underscoring Alabama’s role as an important part of the company’s global production network," as well as aligning with its "local-for-local" approach.
The plant has operated just outside the west-central Alabama city since the 1990s. In that time, it has manufactured over 4.5 million Mercedes vehicles.
Of the vehicles it builds there each year, roughly 60% are exported to other countries, Mercedes-Benz said.
Alabama Gov. Kay Ivey reacted to the news on social media, saying that Mercedes-Benz’s move to make the new "core segment" vehicle at the plant "shows global companies have confidence in our state and workforce."
In recent weeks, Mercedes-Benz and other automakers have been facing tariffs levied against their respective countries by the Trump administration.
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President Donald Trump’s tariff on imported passenger vehicles and light trucks came into force in early April. It amounted to 25%. Another levy of the same size targeting certain key imported auto parts is slated to go live May 3.
On Wednesday, the president issued a proclamation giving some tariff respite to automakers.
It entailed an "offset to a portion of tariffs for automobile parts used in U.S.-assembled vehicles equal to 3.75% of the Manufacturer’s Suggested Retail Price (MSRP) of a manufacturer’s U.S. production for the next year (April 3, 2025, to April 30, 2026), and 2.5% of U.S. production the year after (May 1, 2026, to April 30, 2027)," according to a fact sheet.
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The White House said the move "modifies the tariff action on automobiles and automobile parts by encouraging manufacturers to assemble their automobiles in the U.S., thereby reducing American reliance on foreign imports of automobiles and automobile parts."
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