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Luxury Automobile Manufacturer To Add “New Core Vehicle” At Alabama Plant
Mercedes-Benz on Thursday said it will add a new vehicle to its plant in Alabama in wake of President Trump’s tariffs.
The German automobile manufacturer will include a “core segment” vehicle to its plant near Tuscaloosa by 2027.
“I just got off the phone with Mercedes-Benz North America CEO Jason Hoff, and the news is clear: Alabama is the place to lead,” Alabama Gov. Kay Ivey said.
“Their decision to launch production of a new core vehicle in Tuscaloosa shows global companies have confidence in our state and workforce,” she added.
I just got off the phone with Mercedes-Benz North America CEO Jason Hoff, and the news is clear: Alabama is the place to lead.
Their decision to launch production of a new core vehicle in Tuscaloosa shows global companies have confidence in our state and workforce. #alpolitics pic.twitter.com/XhSAWB6snl
— Governor Kay Ivey (@GovernorKayIvey) May 1, 2025
Per CNBC:
A spokesperson for Mercedes-Benz declined to comment on whether the new vehicle in Alabama was a result of Trump’s tariffs, citing a “local-for-local strategy” of producing vehicles where it sells them.
The automaker said the Alabama plant has established itself as “the global export hub for Mercedes-Benz SUVs.” The company said roughly 60% of SUVs assembled at the plant are exported.
The announcement comes amid Trump’s ongoing 25% auto tariffs on imported vehicles, as well as additional levies of 25% on automotive parts that are scheduled to go into effect by Saturday.
Mercedes did not disclose the nameplate it plans to assemble in Alabama but said it would be a “core segment” vehicle. Here's a good bet on what Mercedes will build there. https://t.co/tbpLEbeZKi pic.twitter.com/s3SR83p6mU
— Automotive News (@Automotive_News) May 1, 2025
“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,” Mercedes-Benz North America CEO Jason Hoff said, according to CNBC.
Mercedes-Benz’s massive plant in Tuscaloosa, Alabama, will build a new vehicle for the luxury automaker by 2027 as President @realdonaldtrump pushes to bring more manufacturing back to the U.S. pic.twitter.com/C9awDF3Pu7
— Fox News (@FoxNews) May 2, 2025
From The Hill:
On Monday, the Trump administration said it would allow automakers to apply for 15 percent price offsets in the first year of the tariffs and a 10 percent offset in the second year, in hopes of hoisting the domestic production of automobiles.
Twenty-five percent tariffs on imported automobiles and auto parts are scheduled to go into effect Saturday.
Mercedes-Benz and others have heeded the White House’s warning about an increase in the cost of foreign auto part production. BMW, Stellantis, Toyota, Kia, Honda and Hyundai also plan to move more vehicle manufacturing to the U.S. according to a White House release.
“Tuscaloosa has been a key hub for Mercedes-Benz vehicles for almost 30 years. 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,” said Ola Källenius, chair of the board of management of Mercedes-Benz Group AG, in a statement.
The company said that since 1997, more than 4.5 million vehicles have left the Tuscaloosa plant, with around 260,000 vehicles rolling off the line in 2024 alone. The Tuscaloosa plant is home to the GLE, GLS, GLE Coupe, and Mercedes-Maybach GLS as well as the EQE SUV, EQS SUV, and Mercedes-Maybach EQS SUV for all global markets.