Mercedes-Benz confirms GLC SUV will be built in Alabama starting in 2027

It’s official. Mercedes-Benz has confirmed that the new “core” vehicle it will build in Alabama is the GLC SUV, ending months of speculation.

The details: Rumors have been swirling as to what Mercedes vehicle was being slated for its Tuscaloosa facility—as the automaker looks to expand its U.S. manufacturing footprint amid the 25% auto tariffs on vehicles imported from Germany, 

• GLC crossovers built at the Alabama plant will be for the North American market and will start rolling off the assembly line in 2027.

• Mercedes sold more than 64,000 GLC crossovers in the U.S. in 2024, which represents roughly 20% of its 324,500 deliveries in the U.S. last year. 

• The automaker has remained mum as to whether the GLC EV will be built in the U.S.

Zooming out: Mercedes-Benz is providing even less details about its plans to build the GLC at the plant, like how much it will invest to assemble the new Mercedes crossover at the Alabama facility (though some industry insiders have put the tally at several hundred million dollars). The company has, however, said that building the GLC in Alabama won’t require an expansion at the facility.

Between the lines: It makes sense to build the GLC in the U.S., given the success of the crossover and the continued growth and strong viability of the segment overall in the North American market.

• GLC sales climbed 58% in 2024 and nearly doubled in Q1 2025 compared to Q1 2024.

• The luxury SUV market is expected to grow at a CAGR of 18.9% from 2024 to 2030.

Bottom line: It’s a calculated move to protect volume (not just profit) in a market that’s becoming more politically and economically unpredictable.

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