Mercedes-Benz will expand its vehicle production lineup in Alabama beginning in 2027, the automaker announced May 1.
Details were limited about what type of vehicle the automaker will build in Alabama, but the company said in the release it would “bring a core segment vehicle” to the U.S. market “tailored to U.S. customer preferences.” Mercedes-Benz primarily produces SUVs in Alabama, including the GLE, GLS and Mercedes-Maybach GLS SUVs, the GLE Coupe and fully electric EQE and EQS models.
A Mercedes-Benz spokesperson also declined to elaborate on the company’s plan for Alabama, where it produced roughly 260,000 vehicles in 2024.
Mercedes-Benz did not indicate that its decision was influenced by the wave of tariffs implemented by the Trump administration. However, the spokesperson noted the company’s action is in line with its strategy of continuously optimizing its production network, which gives it “flexibility to react to fluctuations and changing market conditions to remain competitive.”
Other automakers have made similar moves to mitigate higher production costs fueled by tariffs. Toyota, Honda and Nissan have each announced separate plans to ramp up U.S. production.
For Mercedes-Benz, expanding its Alabama production lineup likely will benefit the nearly 200 suppliers it partners with across the state. The automaker estimates its Alabama operations, where it employs more than 6,000 people, supports about 60,000 jobs with suppliers and service providers throughout the region.
“We are getting even closer to the U.S. customer by localizing a core segment model in Tuscaloosa, strengthening our ties to the North American market where a range of Mercedes-Benz vehicles including the GLE and GLS models have their roots,” Jason Hoff, CEO of Mercedes-Benz North America, said in the release.
