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

The move strengthens Mercedes' U.S. manufacturing presence in response to tariffs and aligns with its local-for-local strategy.

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A Mercedes-Maybach S 680 is displayed at the Mercedes-Benz booth during a media day for the Auto Shanghai show in Shanghai, China April 24, 2025. REUTERS/Go Nakamura/File photo
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Overview

  • Mercedes-Benz confirmed plans to localize production of a new core vehicle segment at its Tuscaloosa, Alabama plant by 2027.
  • The decision follows President Trump’s 25% tariffs on imported vehicles and parts, which have prompted automakers to expand U.S. manufacturing.
  • The Tuscaloosa plant, a global export hub for Mercedes SUVs, currently exports about 60% of its production worldwide.
  • The White House praised the announcement as a win for its policies promoting domestic manufacturing through tariff incentives.
  • Other automakers, including Hyundai and BMW, have also announced increased U.S. investments in response to the tariffs.