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Mercedes to produce new vehicle in Alabama by 2027

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Trump's tariffs impact global automotive industry

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Mercedes faces challenges in major markets, including EU

emissions targets

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Mercedes pulls earnings guidance amid tariff uncertainty

By Nora Eckert

DETROIT, May 1 (Reuters) - Mercedes-Benz plans

to begin producing a new vehicle at its Tuscaloosa, Alabama,

plant in 2027, the company said Thursday, the latest in a series

of investments carmakers have announced following U.S. President

Donald Trump's aggressive auto tariffs.

The German automaker didn't disclose which vehicle it would

add to its Tuscaloosa plant, only saying it would be a "core

vehicle segment" that would "deepen its commitment to the U.S."

Trump's 25% levies on automotive imports have rocked the global

automotive industry, although this week he offered a reprieve on

some elements of the tariffs.

An analysis released by the Center for Automotive Research in

early April found that the 25% auto tariffs would increase costs

by about $108 billion for automakers in the U.S. in 2025.

Hyundai, GM and other automakers have boosted U.S. output or

announced investments in response to the levies.

Mercedes this week pulled its earnings guidance amid tariff

uncertainty. The automaker is facing hurdles in all its major

markets, from Trump's tariffs, to competition from fast-moving

rivals in China and new CO2 emissions targets in the European

Union.

The company's Alabama plant currently produces the GLE, GLS,

GLE Coupe, Mercedes-Maybach GLS, as well as the EQE SUV, EQS

SUV, and Mercedes-Maybach EQS SUV for all global markets.