On Thursday, Mercedes-Benz revealed significant plans to start producing new “core segment” vehicles at its facility in Tuscaloosa by 2027.
“Tuscaloosa has played a crucial role for Mercedes-Benz for nearly three decades,” said Ola Kallenius, chairman of the Management Committee at Mercedes-Benz Group AG.
“It’s a logical move to bring additional models to Alabama as part of our strategy to strengthen our commitment to the U.S., which has been our primary market for over a hundred years.”
US Senator Katie Britt (R-Montgomery) announced this development on Thursday, coinciding with President Donald Trump’s visit to the University of Alabama, not too far from the Mercedes plant.
Fantastic news! During President Trump’s visit to the University of Alabama, Mercedes-Benz announced their intention to shift core production to Tuscaloosa. A major win for our state.https://t.co/ivvzeklo0z.
– Senator Katie Boyd Britt (@senkatiebritt) May 1, 2025
In Alabama, since 1997, Mercedes-Benz has manufactured over 4.5 million vehicles, with around 260,000 units produced in 2024 alone.
The company’s expansion is partly influenced by the recent 25% tariff on imported vehicles imposed by the Trump administration.
The White House indicated on Thursday that President Trump aims to boost American manufacturing, and automakers are responding accordingly.
Once again, the Trump effect! Mercedes creates another model in the U.S. to counter tariffshttps://t.co/kr7cwrzlkb
– Quick Response 47 (@rapidResponse47) May 1, 2025
Alabama Governor Kay Ivey warmly welcomed the announcement.
“I just spoke with Jason Hoff, CEO of Mercedes-Benz North America. The message is clear: Alabama is a leader,” Ivy shared. “Their choice to initiate production of new core vehicles in Tuscaloosa reflects the confidence global companies have in our state and workforce.”
I just got off the phone with Jason Hoff, CEO of Mercedes-Benz North America, and the news is clear. Alabama is where you can lead.
Their decision to start production of new core vehicles at Tuscaloosa shows that global companies are confident in our state and workforce. #alpolitics pic.twitter.com/xhsawb6snl
– Governor Kay Ivey (@goverrorkayivey) May 1, 2025
This expansion comes less than a year after workers at the Tuscaloosa plant voted against joining United Auto Workers, underscoring Alabama’s standing as a non-union state in the auto industry.
State officials, including Governor Ivey, emphasized that this vote highlighted Alabama’s commitment to an environment favorable for business.
