Mercedes-Benz is planning to start making a new vehicle at its plant near Tuscaloosa, Ala., in 2027, the company announced on Thursday. This follows a series of investments by carmakers in response to President Trump’s auto tariffs. The German automaker didn’t specify which vehicle would be added to the Tuscaloosa plant, only stating that it would be a “core vehicle segment” to strengthen its commitment to the US.
President Trump’s 25% tariffs on automotive imports have caused major disruptions in the global automotive industry. However, this week, he made some exceptions to the tariffs. According to an analysis by the Center for Automotive Research in early April, the 25% auto tariffs could lead to a cost increase of about $108 billion for US automakers by 2025.
In response to the tariffs, Hyundai, GM, and other automakers have either increased their production in the US or announced new investments. Mercedes-Benz, on the other hand, has faced uncertainty due to the tariffs, prompting the company to withdraw its earnings guidance this week. The automaker is dealing with challenges in all its key markets, from Trump’s tariffs to competition from agile rivals in China and new CO2 emissions targets in the European Union.
The Alabama plant currently manufactures models such as the GLE, GLS, GLE Coupe, Mercedes-Maybach GLS, EQE SUV, EQS SUV, and Mercedes-Maybach EQS SUV for global markets. The addition of a new vehicle in 2027 will further solidify Mercedes-Benz’s presence in the US automotive industry.
Not really sure why this matters, but it seems like Mercedes-Benz is making moves to navigate the challenges brought on by the tariffs. Who knows what the future holds for the automotive industry, but for now, it looks like carmakers are adapting to the changing landscape.
