Mercedes-Benz to Produce New Core Vehicle Segment in Alabama

Mercedes-Benz announced plans to produce a new core segment vehicle at its Tuscaloosa, Alabama plant by 2027, strengthening its already significant manufacturing footprint in the United States. The move reflects the company’s “local-for-local” strategy and signals a deepening commitment to its second-largest global market.

The Tuscaloosa facility, which has been in operation since 1997, has long been a cornerstone of the automaker’s global production network. With more than 4.5 million vehicles assembled and approximately 60 percent exported annually, it ranks among the top U.S. automobile exporters. In 2024 alone, the plant is expected to produce 260,000 vehicles.

“Tuscaloosa has been a key hub for Mercedes-Benz vehicles for almost 30 years,” said Ola Källenius, chairman of the board at Mercedes-Benz Group AG. “It’s a natural step to bring a further model to Alabama as part of a strategy to deepen our commitment to the United States, a market that has been our home for more than a century.”

The plant currently produces a range of SUVs, including the GLE, GLS, GLE Coupe, and the all-electric EQE and EQS SUVs, including their Maybach variants, for global markets. The decision to localize another model follows ongoing investments in flexibility and digitalization at the Tuscaloosa site.

Mercedes-Benz U.S. International employs more than 6,000 people directly and supports an estimated 60,000 jobs through its supply chain and service providers in the region, including 200 suppliers based in Alabama.

“This is a strategic move to be even closer to our U.S. customers,” said Jason Hoff, CEO of Mercedes-Benz North America. “Vehicles like the GLE and GLS have their roots in this market, and localizing a core segment model reinforces that connection.”

Mercedes-Benz has invested over $10 billion in the U.S., including $7 billion in Alabama alone. The company also operates a van assembly plant in Charleston, S.C., and is making a $1.2 billion investment in EV charging infrastructure across North America.

With a presence in 13 states, 385 dealerships, and over 11,000 direct employees, Mercedes-Benz remains a prominent player in the U.S. automotive industry. In 2024, the company reported U.S. sales of over 324,000 passenger cars and nearly 50,000 vans.

In addition to production, Mercedes-Benz is expanding its innovation footprint in the U.S., holding nearly 100 patents and recently launching DRIVE PILOT, the first SAE Level 3 automated driving system approved for use in California and Nevada.

As Mercedes-Benz continues to scale its American operations, its Tuscaloosa facility remains the centerpiece of its strategy to blend global engineering with local production.

As one of the world’s leading premium carmakers, Mercedes-Benz AG sold around 2.4 million passenger cars and vans in 2024. Operating across more than 30 production sites on four continents, the company continues to expand its global manufacturing and battery production networks to support the shift to electric mobility.

Sustainability underpins Mercedes-Benz’s strategy, aiming to create long-term value for customers, employees, investors, partners, and society. The company takes responsibility for the full impact of its operations — economic, environmental, and social — across the entire value chain