Mercedes to add ‘core’ new vehicle to Alabama plant

Regardless of what one might think about the auto tariffs—the measures certainly appear to be enticing or forcing (depending on your perspective) more companies to build cars in the U.S., the most recent being Mercedes-Benz. 

Of course, the question fueling debates everywhere, from CNN’s NewsNight with Abby Phillip (personal favorite) to the comment sections of The Joe Rogan Experience (respect) podcast is—at what cost short-term? 

The details: Either way, Mercedes-Benz is one of the latest to announce that it’s deepening its U.S. production footprint—with plans to assemble what’s being described as “a core segment vehicle” in Tuscaloosa, Alabama. 

• The new Mercedes “core” vehicle—to be tailored for U.S. customers at the Tuscaloosa facility—is slated to arrive by 2027.

• Since 1997, more than 4.5 million vehicles have left the Tuscaloosa plant—with around 260,000 vehicles rolling off the line in 2024 alone, according to Mercedes. 

• The Alabama plant produces the GLE, GLS, GLE Coupe, and Mercedes-Maybach GLS as well as the EQE SUV, EQS SUV, and Mercedes-Maybach EQS SUV shipped globally.

Why it matters: As one Midwest Mercedes-Benz retailer told CDG News, “Eliminating potential production and delivery eta’s that come from shipping and or delays in port make us more efficient in customer orders and reduce inventory holding costs.”

Between the lines: As far as that short-term impact of the auto tariffs? Well, Mercedes-Benz appears to be still sorting through the potential damage—indicating Wednesday that it was pulling its 2025 earnings outlook due to the uncertainty surrounding the levies. 

• “The current volatility with regard to tariff policies, mitigation measures and resulting potential direct and indirect effects, in particular on customer behaviour and demand, is too high to reliably assess the business development for the remainder of the year,” reads a press release statement from the company.

• The automaker also warned that if the trade policies continue, EBIT and free cash flow of the industrial business, as well as the adjusted returns on sales for Mercedes-Benz Cars and Mercedes-Benz Vans, will take a hit.

Bottom line: Mercedes-Benz—much like every other manufacturer—isn’t 100% sure of how the auto tariffs will impact its operations in the short term, but the company expects it to be major. 

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