Mercedes details plans for US production investments in Alabama

By Nora Eckert

DETROIT (Reuters) -Mercedes-Benz plans to begin producing a new vehicle at its Tuscaloosa, Alabama, plant in 2027, the company said Thursday, the latest in a series of investments carmakers have announced following U.S. President Donald Trump’s aggressive auto tariffs.

The German automaker didn’t disclose which vehicle it would add to its Tuscaloosa plant, only saying it would be a "core vehicle segment" that would "deepen its commitment to the U.S." 

Trump’s 25% levies on automotive imports have rocked the global automotive industry, although this week he offered a reprieve on some elements of the tariffs. 

 An analysis released by the Center for Automotive Research in early April found that the 25% auto tariffs would increase costs by about $108 billion for automakers in the U.S. in 2025.

Hyundai (OTC:HYMTF), GM and other automakers have boosted U.S. output or announced investments in response to the levies. 

Mercedes this week pulled its earnings guidance amid tariff uncertainty. The automaker is facing hurdles in all its major markets, from Trump’s tariffs, to competition from fast-moving rivals in China and new CO2 emissions targets in the European Union.

The company’s Alabama plant currently produces the GLE, GLS, GLE Coupe, Mercedes-Maybach GLS, as well as the EQE SUV, EQS SUV, and Mercedes-Maybach EQS SUV for all global markets.

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