DETROIT, May 1 (Reuters) – Mercedes-Benz (MBGn.DE) plans to begin producing a new vehicle at its Tuscaloosa, Alabama, plant in 2027, the company said Thursday. The automaker called the upcoming model a “core vehicle segment” that would “deepen its commitment to the U.S.” but did not disclose further details on the vehicle type.
Tariff Pressure Spurs U.S. Investments
The announcement follows a wave of investments by carmakers in the U.S. after President Donald Trump’s aggressive auto tariffs. Trump’s 25% levies on automotive imports have rocked the global automotive industry, although this week he offered a reprieve on some elements of the tariffs.
An analysis released by the Center for Automotive Research in early April found that the 25% auto tariffs would increase costs by about $108 billion for automakers in the U.S. in 2025.
Carmakers Respond to Trade Policy
Hyundai, GM and other automakers have boosted U.S. output or announced investments in response to the levies.
Mercedes is also grappling with challenges in other regions. The automaker is facing hurdles in all its major markets, from Trump’s tariffs, to competition from fast-moving rivals in China and new CO2 emissions targets in the European Union.
This week, Mercedes pulled its earnings guidance amid tariff uncertainty.
Tuscaloosa Plant Overview
The Tuscaloosa facility already produces a variety of luxury SUVs including the GLE, GLS, GLE Coupe, Mercedes-Maybach GLS, as well as the EQE SUV, EQS SUV, and Mercedes-Maybach EQS SUV for all global markets.
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