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Mercedes-Benz Puts $4 Billion Into Alabama SUV Plant Through 2030

The move signals a shift to local SUV output to blunt tariff costs.

Overview

  • Mercedes-Benz, at its Tuscaloosa plant event on Tuesday, announced a $4 billion investment through 2030 to expand U.S. SUV production.
  • The commitment sits within a U.S. program topping $7 billion and includes plans to add the high-volume GLC to the Alabama line in the coming years.
  • Company leaders cited U.S. tariffs on imported vehicles and parts as a key reason to build more cars in America after reporting about €1 billion in tariff costs.
  • Mercedes is aiming for 400,000 U.S. car sales by 2030, up from 303,200 in 2025, even as its U.S. chief said 2026 looks tougher with high loan rates and rising gas prices.
  • The company is also consolidating U.S. operations by relocating up to 500 roles to a new research and development hub near Atlanta.