Mercedes-Benz plans to start manufacturing a core segment vehicle at its Tuscaloosa Alabama facility by 2027 because of President Trump’s 25% auto tariffs on imported vehicles and upcoming parts levies. The global SUV export hub located at the plant produces 60% of its output for export purposes while manufacturing GLE and GLS models.
CEO Jason Hoff stated that the company will adopt a “local-for-local” approach to build stronger ties with the U.S. market but the company representative refrained from making a direct connection to tariffs. The manufacturing initiative supports Trump’s domestic production initiative but the upcoming 25% parts tariffs scheduled for Saturday may increase production expenses.
The Alabama investment by Mercedes-Benz serves to strengthen its North American operations through the existing SUV manufacturing capabilities at the plant. The company’s decision to produce a new vehicle at its Alabama plant positions Mercedes to reduce import expenses while maintaining market competitiveness but the vehicle specifications remain undisclosed which generates market speculation.
