Mercedes-Benz on Thursday (May 1st) announced it will begin producing a new vehicle at its Tuscaloosa County plant in 2027.
The company provided few details about the nature of the vehicle, which it referred to as a “core segment vehicle,” beyond statements that the move would further enhance the importance of its Alabama operations within the global company.
Mercedes-Benz made the announcement a day after it suspended its financial forecasts for 2025, citing the uncertainty caused by the Trump Administration’s auto tariffs on foreign-built cars and parts.
Mercedes-Benz recorded a 1% sales bump in the first quarter, while its global sales were down 7% in the first quarter of the year.
In recent weeks, Mercedes’ executives have spoken about extra capacity at the Tuscaloosa County plant as a way to blunt some of the impact from the tariffs.
Mercedes faced a particular dilemma in that the powertrain for its vehicles is made in Europe, according to Autoblog.
“Tuscaloosa has been a key hub for Mercedes-Benz vehicles for almost 30 years,” Mercedes Chairman Ola Källenius said.
“It’s a natural step to bring a further model to Alabama as part of a strategy to deepen our commitment to the United States, a market which has been our home for more than a century.”
Since 1997, the Tuscaloosa County plant has made more than 4.5 million vehicles, with around 260,000 vehicles last year. About 60% of its annual output is exported to global markets.
The Tuscaloosa plant is home to the GLE, GLS, GLE Coupe, and Mercedes-Maybach GLS SUVs, as well as the EQE SUV, EQS SUV, and Mercedes-Maybach EQS SUV, for all global markets.
During its time in Alabama, Mercedes has invested roughly $7 billion here, including $1.2 billion since 2017 to produce electric vehicles and batteries at its Bibb County plant.
“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.
Today, Mercedes-Benz U.S. International (MBUSI) employs more than 6,000 people and about 60,000 jobs with regional suppliers, including 200 located in Alabama.
