Mercedes-Benz is doubling down on its U.S. manufacturing footprint with plans to construct a brand new automobile at its Tuscaloosa, Alabama, facility by 2027. The announcement comes as world automakers grapple with President Donald Trump’s revived 25% tariffs on imported autos. Whereas Mercedes-Benz declined to specify whether or not the choice is a direct response to the tariffs, the corporate emphasised its “local-for-local” technique—producing autos within the areas the place they’re bought. That technique now consists of what the automaker calls a “core phase” mannequin, to be localized on the similar plant that at the moment builds the GLE and GLS SUVs.
“We’re getting even nearer to the U.S. buyer by localizing a core phase mannequin in Tuscaloosa,” stated Mercedes-Benz North America CEO Jason Hoff. “This transfer strengthens our ties to the North American market the place a variety of Mercedes-Benz autos have their roots.”
Tuscaloosa has lengthy served as a cornerstone of Mercedes’ world SUV manufacturing technique. Roughly 60% of the SUVs constructed on the plant are exported, making it one of many firm’s most essential worldwide hubs.
However the resolution to extend manufacturing on U.S. soil is a part of a broader business pattern, as automakers brace for escalating tariffs on each totally assembled autos and elements. As of this weekend, a further spherical of 25% tariffs on automotive elements is ready to take impact.
What Different Automakers Are Doing
Mercedes-Benz isn’t alone in adjusting its manufacturing footprint:
- BMW is reportedly contemplating adding production shifts at its Spartanburg, South Carolina, plant, doubtlessly rising output by as much as 80,000 models per 12 months. The power already serves as BMW’s world SUV hub and is the highest U.S. automobile exporter by worth, transport greater than $10 billion in autos overseas final 12 months.
- Honda is shifting manufacturing of its fashionable Civic mannequin from Japan to the U.S.
- Hyundai not too long ago pledged $20 billion in U.S. funding, together with a $5.8 billion metal plant in Louisiana
- Kia plans to provide hybrid autos in Georgia
- Nissan is evaluating the potential for transferring manufacturing from Mexico to U.S. vegetation in mild of commerce coverage shifts.
- Stellantis is reopening its Belvidere, Illinois, manufacturing unit to fabricate a brand new midsize pickup
- Toyota is ramping up hybrid automobile manufacturing at its West Virginia plant
For now, BMW doesn’t appear to plan any main manufacturing shifts. As an alternative, many of the present car prices are being protected through May. The one distinction is the pricing for the two Sequence Coupe and its M2 sibling which is up 4%. As a refresher, the G42 and G87 are completely inbuilt Mexico on the San Luis Potosí plant. It’s too early to say how for much longer BMW will be capable of protect prospects from increased costs to offset the newly imposed tariffs.
