TSLA405.0504.56%
GM80.4301.14%
F14.0950.035%
RIVN15.100-1.42%
CYD48.8500.15%
HMC25.990-0.27%
TM169.730-4.21%
CVNA66.6500.09%
PAG175.000-0.2%
LAD295.1500.3%
AN188.300-0.44%
GPI315.2502.09%
ABG196.200-0.85%
SAH80.580-0.15%
TSLA405.0504.56%
GM80.4301.14%
F14.0950.035%
RIVN15.100-1.42%
CYD48.8500.15%
HMC25.990-0.27%
TM169.730-4.21%
CVNA66.6500.09%
PAG175.000-0.2%
LAD295.1500.3%
AN188.300-0.44%
GPI315.2502.09%
ABG196.200-0.85%
SAH80.580-0.15%
TSLA405.0504.56%
GM80.4301.14%
F14.0950.035%
RIVN15.100-1.42%
CYD48.8500.15%
HMC25.990-0.27%
TM169.730-4.21%
CVNA66.6500.09%
PAG175.000-0.2%
LAD295.1500.3%
AN188.300-0.44%
GPI315.2502.09%
ABG196.200-0.85%
SAH80.580-0.15%

Mercedes to build new vehicle in Alabama as tariffs reshape auto industry

The move comes as automakers assess their production strategies under the weight of new trade barriers.
Mercedes-Benz announced that it will manufacture a new vehicle at its Tuscaloosa, Alabama, plant by 2027, expanding its U.S. footprint

Image Source | Mercedes-Benz Media Newsroom

Mercedes-Benz announced Thursday that it will manufacture a new vehicle at its Tuscaloosa, Alabama, plant by 2027, expanding its U.S. footprint as the Trump administration enforces steep new tariffs on imported vehicles and automotive parts.

Although the company withheld details about the vehicle, it described it as a “core segment” model. The Alabama facility currently produces popular SUV models such as the GLE and GLS, making it likely that the new addition will also be an SUV.

Sign up for CBT News’ daily newsletter and get the latest industry stories delivered straight to your inbox.

“We are getting even closer to the U.S. customer by localizing a core segment model in Tuscaloosa,” said Jason Hoff, CEO of Mercedes-Benz North America, in a press release

The move comes as automakers assess their production strategies under the weight of new trade barriers. Since April 3, all imported vehicles have been subject to a 25% tariff under President Donald Trump’s trade policy. A second wave of 25% tariffs on imported automotive parts is set to take effect Saturday. Though Mercedes-Benz did not directly attribute the new production plans to the tariffs, a company spokesperson emphasized the automaker’s “local-for-local” strategy—producing vehicles in the markets where they are sold.

The Tuscaloosa plant has been a critical hub for Mercedes-Benz, serving as the company’s global export center for SUVs. Approximately 60% of the vehicles assembled there are shipped overseas. By adding new production capacity in the U.S., the company may insulate itself from rising costs associated with the tariffs while reinforcing its presence in a key market.

The expansion also positions Mercedes-Benz to meet evolving consumer demand and market dynamics in the U.S., where SUVs remain dominant, and the cost of imported vehicles is expected to rise due to ongoing trade pressures.

Read More
More from Articles
Compliance, Uber Technologies

Uber board sued over alleged compliance failures tied to abuse claims

- June 22, 2026
On the Dash: Uber shareholders sued the company’s board over alleged failures to address safety and compliance risks. The complaint points to thousands of sexual misconduct lawsuits and federal claims...
Gurley Leep acquires Victory CDJR dealership in Merrillville from Victory Automotive Group

Gurley Leep acquires Victory CDJR dealership in Merrillville from Victory Automotive Group

- June 22, 2026
Gurley Leep Automotive Family has acquired Victory Chrysler Dodge Jeep Ram in Merrillville, Indiana from Victory Automotive Group. The transaction closed June 1, 2026 and the dealership has been renamed...
EV maker Lucid cuts 18% of U.S. workforce, eliminates COO role

EV maker Lucid cuts 18% of U.S. workforce, eliminates COO role

- June 22, 2026
On the Dash: Lucid is cutting roughly 18% of its U.S. workforce and eliminating its COO role, effective immediately. The restructuring targets $158 million in annual savings and scraps a...
UAW, automakers clash over AI and robotics as factory automation expands

UAW, automakers clash over AI and robotics as factory automation expands

- June 22, 2026
On the Dash: Automakers are increasing investments in AI, robotics and automation to improve efficiency, safety and global competitiveness. The UAW is signaling that automation and workforce protections could become...