financetom
Business
financetom
/
Business
/
Mercedes details plans for US production investments in Alabama
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Mercedes details plans for US production investments in Alabama
May 25, 2025 11:31 PM

DETROIT (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.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Copyright 2023-2026 - www.financetom.com All Rights Reserved