Mercedes-Benz to Build “Core Model” in the U.S. Starting in 2027
In a response to the new U.S. tariffs, German automaker Mercedes-Benz has recently confirmed that it will start producing a “core model” at its Tuscaloosa, Alabama plant in 2027.
This follows on directly from the announcement made in February by Mercedes-Benz AG Chairman Ola Källenius that 70 percent of vehicles sold in the U.S. within two years will be manufactured locally, up from approximately 60 percent at the moment.
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The Tuscaloosa factory builds the GLE, GLE Coupe, EQE SUV, EQS SUV and Mercedes-Maybach GLS. Two-thirds of its production is shipped to markets outside the U.S. The company also has an EV battery plant nearby.
The new model slated to join them will be “tailored to U.S. customer preferences,” Mercedes-Benz said. It could be a car like the C-Class or E-Class. Some media outlets, including Automotive News, predict it will be another SUV, namely the compact-sized GLC. UPDATE-05/12/2025: Mercedes-Benz has confirmed it will build the GLC in Alabama.
The GLC is about to get a full redesign and usher in a new generation of electric vehicles based on the MB.EA architecture, as we reported in early March. Development and testing are nearly over, and an official debut is expected to take place in September. Sales in Canada should begin next year as a 2026 model.
Tuscaloosa became the first major Mercedes-Benz plant outside Germany when it launched in 1997, initially making the M-Class SUV (the GLE’s ancestor). Over the years, the facility has also built the R-Class, GL-Class and at one point the C-Class.