Trump administration tariffs are pushing automakers to consider heavier US-based production and assembly options. Mercedes-Benz is taking a committed stance.
Alabama probably isn’t the first place you think of when you hear the words “Mercedes-Benz,” but if you’re familiar with the brand, it might not be far down the list. Tuscaloosa, Alabama has been home to Mercedes-Benz production for nearly three decades. The new tariffs on imported autos and auto parts have automakers scurrying to find workarounds and solutions. In Mercedes’ case, it’s bringing assembly of what the automaker calls a “core segment vehicle” Stateside.
Mercedes-Benz
The German automaker is targeting 2027 as a due date for the new model, most likely the GLC
While the boys in Stuttgart aren’t new to US production, it looks like tariffs have perhaps driven them to prioritize production in the US. “We are getting even closer to the U.S. customer by localizing a core segment model in Tuscaloosa,” says Jason Hoff, CEO of the company’s North American operations. “Strengthening our ties to the North American market where a range of Mercedes-Benz vehicles including the GLE and GLS models have their roots.” If you didn’t already know, those are just two of the many Mercedes models already produced Stateside. Unfortunately, there’s no official mention on what the “core segment vehicle” might be, but most experts—notably, Automotive News—seem to think it will be the new home of the GLC. It makes sense, considering the Hoff mentioned the other SUVs by name.
Want more evidence? Mercedes-Benz moves a heck of a lot of GLCs in the US. Last year, the brand sold 64,163 examples, an increase of 58 percent compared to 2023. Not only were sales up year over year, but that accounted for nearly 20 percent of the 374,101 units that MB moved in the US overall. The final bit of the puzzle? Mercedes breaks its vehicles into segments, with names like “top-end,” “entry,” and, most conspicuously, “core.” Core refers specifically to the GLE, GLC, E-Class, and C-Class, leaving little doubt in our mind which one is relocating.
Mercedes-Benz
Tuscaloosa is already home to plenty of Mercedes-Benz vehicles — expensive ones, too
Naming segments aside, Alabama already has plenty of experience making vehicles from across the Benz family. Around 260,000 vehicles — primarily SUVs — rolled off the line last year, ranging from the GLE Coupe to the super exclusive Mercedes-Maybach EQS SUV and other all-electric models like the EQE SUV. The automaker claims that roughly 60 percent of annual output is exported — making Mercedes-Benz, like competitor BMW, a leading exporter in the nation.
Final thoughts
Mercedes bringing GLC production to the US marks one of the firmest commitments yet an automaker has offered in the face of tariffs. Among a sea of vague promises, veiled hints at price hikes, and shipping freezes, there’s really been very little decisive action. There are outliers — companies like Hyundai, who have claimed to invest $21 billion in US-side manufacturing — and now, it seems Mercedes-Benz has joined them. More SUV assembly in the US will definitely aid Mercedes in the coming years, should the tariffs stick. But at this rate, it’s hard enough to map out what will happen in two months, let alone two years.
