Automotive
Mercedes-Benz wants to make another vehicle in the US
Written by Stephanie Ritenbaugh
May 6, 2025
Mercedes-Benz is planning to move production of a “core segment vehicle” to Tuscaloosa, Ala., by 2027.
“Tuscaloosa has been a key hub for Mercedes-Benz vehicles for almost 30 years,” said Ola Källenius, board chairman of the German automaker. “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.”
The announcement last week came days after President Trump said he would ease some of the 25% auto tariffs in the latest change to frequently changing trade policy.
The administration said it will offer a 15% rebate this year for automakers that finish their vehicles domestically. That rebate would be 10% the second year, giving the automakers some time to relocate production of parts outside the country to the United States.
Mercedes-Benz has manufactured 4.5 million vehicles from the Tuscaloosa plant since 1997. The facility produces 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.
The automaker said it employs more than 6,000 people in the US.
Stephanie Ritenbaugh
Read more from Stephanie RitenbaughLatest in Automotive
Auto growth to slow amid tariff uncertainty
CRU Group revised down its forecast for North American auto production by about 800,000 to 14.7 million this year.
Supply chain issue temporarily halts Ford assembly plant
Ford Motor Co. started a planned outage early at its Chicago assembly plant due to a supply chain issue.
CRU: Tariffs set to dampen global auto growth
The recently announced US tariffs on vehicles and key components from all markets are expected to significantly disrupt global production.
Trump plans to relax some auto tariffs
It's just the latest change for US trade policy