Mercedes-Benz announced Thursday it will begin production of a new “core segment” vehicle at its Tuscaloosa County, Alabama, plant in 2027, further anchoring its U.S. presence amid growing trade uncertainty. While details on the new model were sparse, executives framed the move as a strategic shift to deepen ties with the U.S. market as Trump administration tariffs disrupt global supply chains.
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.
— Governor Kay Ivey (@GovernorKayIvey) May 1, 2025
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
The announcement came one day after the company suspended its 2025 financial forecast, citing the impact of U.S. tariffs on foreign-built cars and components. Mercedes has hinted that added capacity at the Tuscaloosa plant may help offset the cost of tariffs, particularly since key components like powertrains are built in Europe.
Mercedes-Benz has produced more than 4.5 million vehicles in Alabama since 1997 and employs over 6,000 people. Roughly 60% of Tuscaloosa’s output is exported globally.
