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Mercedes-Benz plans to add production of another vehicle segment at its Tuscaloosa, Alabama, plant in 2027. Tariff uncertainty formed part of the context for the May 2025 announcement, but Mercedes did not identify the vehicle or say tariffs were the sole reason. The planned production has not been shown to have started.
What Mercedes announced—and what it did not
In May 2025, Mercedes-Benz said it would begin producing an additional “core vehicle segment” at its Alabama plant in 2027, Reuters reported. The company did not name the vehicle in that announcement, and the available information does not establish the investment, added capacity or job changes tied to the plan. Reuters, May 1, 2025.
That makes the headline question a qualified yes: Mercedes has a plan to make more vehicles in the United States, but the announcement does not prove tariffs alone forced the decision. It also does not mean production has already shifted.
How much Mercedes already makes in Alabama
The Tuscaloosa plant already assembles the GLE, GLS and GLE Coupe SUVs, along with the Mercedes-Maybach GLS and electric SUV models. Mercedes describes the plant as a global production hub and says roughly 60% of its Alabama-assembled SUVs are exported. Mercedes-Benz company information on its U.S. locations.
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That export share matters: local assembly does not serve only U.S. buyers. The site is part of Mercedes’ international supply network, so expanding U.S. production is not simply a matter of replacing imported vehicles one-for-one.
Why tariffs are part of the story
Reuters placed the 2025 production announcement amid 25% automotive tariffs and uncertainty about their effects. For scale, Reuters reported a Center for Automotive Research estimate that 25% auto tariffs would add about $108 billion in costs for U.S. automakers in 2025. That is an industry-wide estimate, not a bill for Mercedes-Benz. Reuters, May 1, 2025.
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Tariff policy has changed over time, so that 2025 context should not be treated as the current rate. An Associated Press report on May 1, 2026, described a separate announcement to raise tariffs on cars and trucks from the European Union to 25% the following week; it also described a prior 15% ceiling on most goods and a 10% tax imposed while the administration investigated substitute authorities after a Supreme Court ruling. These are distinct policy moments, not one continuous rate. Associated Press, May 1, 2026.
What the plan could mean for prices and buyers
More U.S. production could reduce some exposure to tariffs on imported finished vehicles, but it does not automatically make a vehicle tariff-free. The available information does not spell out the future model’s country of origin, parts sourcing, applicable content rules or tariff treatment. Nor does it establish a specific tariff-driven price increase for any Mercedes model.
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An Associated Press report said 35% of the vehicles Mercedes sold in the U.S. were made in Tuscaloosa and reported that the automaker expected prices to undergo “significant increases” in coming years. That report did not quantify an increase attributable to tariffs for a particular vehicle. Associated Press report on Mercedes-Benz, tariffs and U.S. prices.
For shoppers, the practical takeaway is that a planned production shift is not a promise of lower prices. Vehicle prices can depend on more than where final assembly occurs, and the announced plan does not identify a model or give a pricing timeline.
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Separate the 2025 plan from other Mercedes headlines
In April 2025, Mercedes denied a report that it was considering withdrawing cheaper models from the U.S. market. A company spokesperson told Reuters: “This is without any merit. Mercedes-Benz continues to seek sales growth for its highly desirable vehicles.” That denial addressed the cheaper-model speculation; it was not an explanation of the later Alabama production plan. Reuters, April 1, 2025.
Later reporting may discuss which model could move, but the May 2025 announcement itself did not name one. Treat any specific model attribution as separate reporting rather than as a detail confirmed in that announcement.
Alabama’s existing footprint is not a new-jobs forecast
Mercedes’ June 2026 company page reported around 5,800 team members and around 200 U.S. suppliers supporting the Alabama operation. It cited a Center for Automotive Research estimate of more than 60,000 additional regional jobs with suppliers and service providers. That is an estimate of the existing regional impact, not a forecast of jobs created by the planned vehicle production. Mercedes-Benz company information on its U.S. locations.
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