In a triumph for President Trump’s tariff policies, Mercedes-Benz is expanding its Tuscaloosa plant to include a new “core segment” vehicle line by 2027, aiming to boost U.S. manufacturing.
See the tweet below!
The expansion aligns with policies introduced by President Trump to encourage domestic production amidst escalating tariffs.
This strategic move could solidify Alabama’s position as a pivotal locale in Mercedes’ global operations.
Mercedes-Benz’s anticipated production line at the Tuscaloosa plant is set to start in 2027.
Although specifics about the vehicle remain undisclosed, describing it as a “core segment vehicle” signals a significant development.
The plant, primarily known for producing SUVs, will broaden its manufacturing scope, emphasizing its long-standing importance to the brand’s strategy.
Mercedes-Benz has fostered an essential relationship with Alabama since 1997, producing over 4.5 million vehicles.
This expansion reinforces the state’s crucial role, with about 60% of the plant’s production exported worldwide.
The company’s $7 billion investment in the state, including $1.2 billion for electric vehicles and battery production, underscores Alabama’s strategic value.
“Tuscaloosa has been a key hub for Mercedes-Benz vehicles for almost 30 years,” said Mercedes Chairman Ola Källenius, cited by Al.com.
This decision follows the application of Trump’s tariffs on imported steel and aluminum, along with a 25% tariff on imported vehicles, exacerbating existing challenges for foreign automakers in the U.S.
Despite such hurdles, Mercedes has shown resilience with a 1% sales increase in early 2025, contrasting a global slump.
Mercedes-Benz, employing over 6,000 people and generating around 60,000 jobs through regional suppliers, reflects its economic impact on the area.
The new vehicle, localized for the U.S. market, emphasizes a shift in strategy but remains distinct by not directly attributing its decision-making to tariff impacts.
“We are getting even closer to the U.S. customer by localizing a core segment model in Tuscaloosa, strengthening our ties to the North American market where a range of Mercedes-Benz vehicles including the GLE and GLS models have their roots,” declared Jason Hoff, CEO Mercedes-Benz North America.
Ultimately, the expansion signals Mercedes’ commitment to maintaining competitive manufacturing capabilities in the U.S. while navigating Trump’s tariffs.
As the Tuscaloosa plant gears up for this new chapter, it reaffirms Alabama’s vital role in the automotive industry, bolstering job growth and innovation in line with patriotic and fiscally sound policies.
Mercedes-Benz, held in our #luxury fund, will add a new vehicle line to its Alabama plant to help offset the impact of Trump’s vehicle tariffs.
The company also plans to re-localize production of its core segment to its Tuscaloosa-area facility by 2027, says CNBC.
This move… pic.twitter.com/qXuERxRLjq
— U.S. Global Investors (@USFunds) May 1, 2025
