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3mo ago

Mercedes-Benz Shifts U.S. Strategy with New Mid-Size Model Production in Alabama

From 2027, a new Core-segment model tailored for U.S. customers will be built at Mercedes’ Tuscaloosa plant to counter import tariffs and strengthen its American market presence.

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FILE- In this Feb. 14, 2017, file photo, employees do assembly and quality control work on automobiles at the Mercedes-Benz plant in Tuscaloosa, Ala. If a trade spat between the U.S. and China escalates and both countries raise tariffs, American automakers won’t suffer that much. But German luxury automakers BMW and Mercedes will. Mercedes ships up to 75,000 more from Tuscaloosa County. (Gary Cosby Jr./The Tuscaloosa News via AP, File)
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Overview

  • Mercedes-Benz has confirmed plans to produce a new Core-segment mid-size model at its Tuscaloosa, Alabama plant starting in 2027.
  • This decision is a response to 25% U.S. import tariffs, which threaten nearly half of the company’s passenger-car operating profits.
  • The Core segment, which includes high-volume models like the E-Class and GLC, is Mercedes’ largest by production volume.
  • The Tuscaloosa facility, employing over 6,000 workers, produced approximately 260,000 vehicles last year, including large SUVs and electric variants.
  • Mercedes sold nearly 325,000 passenger cars in the U.S. last year, underscoring the importance of the American market in its global strategy.