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    Home > Finance > Mercedes details plans for US production investments in Alabama
    Finance

    Mercedes details plans for US production investments in Alabama

    Published by Global Banking & Finance Review®

    Posted on May 1, 2025

    2 min read

    Last updated: January 24, 2026

    Mercedes details plans for US production investments in Alabama - Finance news and analysis from Global Banking & Finance Review
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    Quick Summary

    Mercedes-Benz plans to produce a new vehicle at its Alabama plant in 2027, responding to US auto tariffs. The plant currently manufactures several models for global markets.

    Mercedes Expands US Production Plans with Alabama Investment

    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, 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.

    (Reporting by Nora Eckert, Editing by Nick Zieminski)

    Key Takeaways

    • •Mercedes-Benz will produce a new vehicle in Alabama by 2027.
    • •The investment follows US auto tariffs imposed by Trump.
    • •Mercedes faces global market challenges including tariffs and emissions.
    • •The Alabama plant currently produces several Mercedes models.
    • •Automakers like Hyundai and GM are also increasing US output.

    Frequently Asked Questions about Mercedes details plans for US production investments in Alabama

    1What is the main topic?

    The article discusses Mercedes-Benz's plans to expand its US production in Alabama by 2027 in response to US auto tariffs.

    2How are auto tariffs affecting Mercedes?

    US auto tariffs have prompted Mercedes to increase its production in the US, impacting its global market strategy.

    3What vehicles are currently produced in Alabama?

    The Alabama plant produces the GLE, GLS, GLE Coupe, Mercedes-Maybach GLS, EQE SUV, EQS SUV, and Mercedes-Maybach EQS SUV.

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