Mercedes-Benz to Expand Tuscaloosa Plant with New Vehicle Production by 2027
Britt calls move “a huge win” for Alabama
Mercedes-Benz has announced plans to commence production of a new vehicle at its Vance, Alabama facility in 2027, marking a significant expansion of its U.S. manufacturing operations. The specific model remains undisclosed, but the company describes it as part of a "core vehicle segment," underscoring its importance to Mercedes-Benz's portfolio.
This strategic move aligns with the company's response to evolving trade policies, notably the 25% tariffs on vehicle imports implemented under President Donald Trump's administration. These tariffs have prompted several automakers, including Mercedes-Benz, to bolster domestic production to mitigate increased costs.
U.S. Senator Katie Britt (R-Ala.) welcomed the announcement, stating, "Tremendous news! As President Trump visits the University of Alabama today, Mercedes-Benz announced a major expansion – bringing a core production segment to Tuscaloosa. This is a huge win for our state and further cements Made in Alabama manufacturing as the gold standard. Our state has a global reputation of excellence, particularly when it comes to auto-manufacturing and production. I’ll continue to fight to bring more good-paying 21st-century jobs to Alabama and onshore our critical supply chains. It’s time to usher in a new golden age of American manufacturing, and that starts right here in Sweet Home Alabama."
The Tuscaloosa plant, operational since 1997, currently produces several SUV models, including the GLE, GLS, and the all-electric EQE and EQS SUVs. In 2024, the facility produced approximately 260,000 vehicles and employed around 6,000 workers.
Mercedes-Benz's continued investment in Alabama reflects the state's growing prominence in the automotive industry.Since the 1990s, the company has invested over $7 billion in the state, contributing to the production of more than four million vehicles.
Alabama's automotive sector has experienced rapid growth, with automakers investing approximately $15 billion in assembly operations. The state's auto plants now have a combined production capacity exceeding 1.3 million vehicles annually, and direct employment in the sector has surpassed 50,000.
Mercedes-Benz's decision to expand production in Tuscaloosa underscores its commitment to strengthening its U.S. manufacturing footprint amid global industry challenges.
