Tariffs Push Mercedes To Expand US Production

Image via Mercedes-Benz

While there’s been no shortage of reports about tariffs ruining everything, we’re also seeing movements in the auto industry, like Mercedes today announcing an expansion of its US manufacturing. The German automaker assembles a number of vehicles in this country, but today it announced a “deepening” of that commitment.

Volkswagen blames financial losses on tariffs.

As part of that expansion of its US manufacturing operations, Mercedes announced in a press release issued this morning it’s adding another model to its production line in Tuscaloosa, Alabama.

Already assembled at the large US factory is the Mercedes GLE, GLS, GLE Coupe, EQE, EQS, Mercedes-Maybach GLS, and Mercedes-Maybach EQS. In case you don’t know the current model lineup well, those are all SUVs.

We expect another SUV will be added to the mix, something Mercedes will only say is a “core segment vehicle.” It’s an obvious move to avoid tariffs on a vehicle that’s popular with US consumers.

The GLE is one of Mercedes’ top sellers in the United States, but that’s already made in Alabama. The C-Class is also popular, but it’s not an SUV. However, the GLC is another hot commodity with Americans, so if we had to bet we’d say that’s what will be added to the production line in Tuscaloosa.

Whatever it is, the new model will start rolling off the line by 2027.

Mercedes also emphasized in its press release that two thirds of the vehicles assembled in the US have traditionally been exported to other countries “contributing to the U.S. trade balance.” One would think the automaker is a little nervous about being perceived as harboring even a little bit of animosity towards the US economy.

Considering how important this market is for the company, it has to take great strides to protect its presence here. The same is true for many other automakers, which has led to others announcing popular model lines will be manufactured here.

Will more of these announcements be coming? We’ll see.

Image via Mercedes-Benz

By Steven Symes

Steven Symes is an accomplished automotive journalist with a passion for all things related to cars. His extensive knowledge and love for the automotive world shine through in his writing, which covers a diverse range of topics.

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