Mercedes to Build New SUV at Alabama Plant

Mercedes-Benz plans to produce a new 'core segment' vehicle—likely an SUV—at its Tuscaloosa, Alabama plant by 2027, reinforcing its commitment to the U.S. market amid 25% tariffs on imported vehicles and parts imposed by the Trump administration. The Tuscaloosa facility, a global hub for Mercedes SUVs, has produced over 4.5 million vehicles since 1997, exporting about 60% of its output. This move is intended to offset rising costs and strengthen local connections by manufacturing vehicles closer to consumers. Mercedes-Benz's Alabama operations support more than 6,000 direct jobs and an estimated 60,000 additional jobs through suppliers and service providers, highlighting the plant’s economic significance. The announcement fits a broader industry trend of automakers boosting U.S. production to respond to trade policies and shifting market conditions.