Mercedes-Benz Group AG confirmed it will shift production of its best-selling GLC SUV to the United States to offset rising costs from President Donald Trump’s tariffs on imported autos.
Production is slated to begin at the automaker’s Tuscaloosa, Alabama, plant by the end of 2027. The facility currently builds popular SUV models such as the GLE and GLS. Earlier this month, Mercedes announced the move, noting it would begin U.S. production of an existing “core segment” model without revealing which one.
The GLC is Mercedes’ most popular imported vehicle in the U.S., with a starting price just shy of $50,000. The automaker sold 64,163 units of the luxury SUV in 2024, a 58% increase from the year prior, signaling strong consumer demand.
“If you see what we want to achieve with volumes on this model, it makes sense to bring it to the U.S.,” Mercedes North America CEO Jason Hoff stated during a press briefing.
The U.S. is the second-largest car market in the world, and Mercedes-Benz’s success in America is critical. Demand for SUVs remains strong, and American consumers have been slower to adopt electric vehicles (EVs). Shifting production of the automaker’s best-performing SUVs to a U.S. facility makes the most economic sense, especially under current U.S. trade policy. German automakers like Mercedes, BMW and Porsche are particularly vulnerable to the impact of higher auto import tariffs.
Earlier this week, President Trump signed an executive order to prevent his auto tariffs from compounding, offering some relief to automakers. While this may ease some financial strain on automakers, the baseline 25% levy on imported vehicles remains.
