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Mercedes-Benz to Build New Core-Segment Model in Alabama by 2027

The move addresses US import tariffs threatening profits and highlights the automaker's commitment to its largest overseas market.

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Overview

  • Mercedes-Benz has confirmed plans to produce a new mid-range Core-segment model at its Tuscaloosa, Alabama plant starting in 2027.
  • The decision is driven by US import tariffs, which currently jeopardize nearly half of the automaker's 2025 passenger-car operating profit.
  • The Tuscaloosa facility, employing over 6,000 workers, currently produces SUVs like the GLS and GLE and their electric variants, with many units exported.
  • CEO Ola Källenius described the expansion as a natural step in deepening Mercedes’ strategic engagement with the US market.
  • The specific model to be manufactured has not yet been disclosed, but the Core segment is Mercedes-Benz's largest by sales volume.