Mercedes-Benz to Invest $4 Billion in U.S. Plant Expansion to Avoid Tariffs

Mercedes-Benz announced it will invest $4 billion by 2030 in its Tuscaloosa, Alabama plant to expand SUV production capacity in response to high U.S. automotive import tariffs. This move is part of the company’s broader plan to invest over $7 billion in the U.S. over the next several years. Mercedes has already shifted production of its best-selling GLC model from Germany to the Alabama facility and plans to consolidate up to 500 positions nationwide into a new research and development center in Atlanta. Jason Hoff, CEO of Mercedes-Benz North America, stated that localizing production of key models makes strong business sense and helps avoid substantial annual costs incurred due to tariffs. Last year, the GLC sold approximately 72,000 units in the U.S., accounting for nearly a quarter of Mercedes-Benz’s total passenger vehicle sales in the country.