Mercedes-Benz doubles its US manufacturing footprint with plans to build a new vehicle in its facility in Tuscaloosa, Alabama by 2027. The announcement comes when global car manufacturers deal with the revived 25% tariffs of 25% on imported vehicles. While Mercedes-Benz refused to specify whether the decision is a direct answer to the tariffs, the company emphasized its “local” strategy-produced vehicles in the regions in which they are sold. This strategy now includes what the car manufacturer refers to as the “core segment” model, which is located in the same system that currently builds the GLS and GLS Suvs.
“We get closer to the US customer by localizing a core segment model in Tuscaloosa,” said Jason Hoff, CEO of Mercedes-Benz North America. “This step strengthens our connections to the North American market, where a number of Mercedes-Benz vehicles have their roots.”
Tuscaloosa has long been the cornerstone of Mercedes’s global SUV production strategy. About 60% of the SUVs built in the plant are exported, which makes it one of the most important international hubs in the company.
However, the decision to increase production on US floor is part of a wider industry trend, since the car manufacturers escalate both on both fully assembled vehicles and sharing. From this weekend, an additional round of 25% tariffs for automotive components should be effective.
What other car manufacturers do
Mercedes-Benz is not only when adjusting its manufacturing footprint:
- According to reports, BMW is considering the production changes in the facility in Spartanburg, in South Carolina, and may increase by up to 80,000 units per year. The facility already serves as a global SUV Hub from BMW and is of the value of the top exporter of the US vehicle, which last year sent vehicles abroad more than 10 billion US dollars.
- Honda shifts the production of his popular Japan citizen model to the USA
- Hyundai recently promised 20 billion US dollars in US investments, including a steel mill of 5.8 billion US dollars in Louisiana
- Kia plans to produce hybrid vehicles in Georgia
- Nissan evaluates the possibility of moving the production of Mexico on US plants in view of the shifts of trade policy.
- Stellantis opens his factory in Belvididere, Illinois to produce a new medium -sized pickup
- Toyota increases hybrid vehicle production in his work in West Virginia
At the moment, BMW does not seem to plan any major production changes. Instead, most of the current car prices are protected by May. The only difference is the pricing for the 2 Series Coupé and its M2 siblings, which has increased by 4%. As a refreshment, the G42 and G87 are built exclusively in Mexico in the San Luis Potosí plant. It is still too early to say how long BMW can protect customers from higher prices to compensate for the newly imposed tariffs.
