Mercedes-Benz to localize a new vehicle in Tuscaloosa, Alabama, enhancing U.S. footprint
New car, tailored to U.S. customer preferences, to come to Tuscaloosa in 2027
Localization strengthens role of Tuscaloosa within global Mercedes-Benz production network
Tuscaloosa has established itself as the global export hub for Mercedes-Benz SUVs
STUTTGART,Germany & TUSCALOOSA, Ala., May 01, 2025--(BUSINESS WIRE)--Mercedes-Benz is set to localize a core segment vehicle in Tuscaloosa, Alabama, USA, deepening its U.S. footprint and underscoring Alabama’s role as an important part of the company’s global production network. For many years, Mercedes-Benz has exported roughly two-thirds of annual output, making it one of the largest exporters of automobiles from the U.S., contributing to the U.S. trade balance.
"Tuscaloosa has been a key hub for Mercedes-Benz vehicles for almost 30 years. It’s a natural step to bring a further model to Alabama as part of a strategy to deepen our commitment to the United States, a market, which has been our home for more than a century." Ola Källenius, Chairman of the Board of Management of Mercedes-Benz Group AG
The localization of a core segment vehicle follows a pattern of enhancing the Alabama site over the past 30 years. 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. The Tuscaloosa plant is home to the GLE, GLS, GLE Coupe, and Mercedes-Maybach GLS as well as the EQE SUV, EQS SUV, and Mercedes-Maybach EQS SUV for all global markets.
Bringing a core segment vehicle to Alabama by 2027 further enhances the company's commitment to the North American market while keeping its local-for-local approach.
"We are getting even closer to the U.S. customer by localizing a core segment model in Tuscaloosa, strengthening our ties to the North American market where a range of Mercedes-Benz vehicles including the GLE and GLS models have their roots." Jason Hoff, CEO Mercedes-Benz North America
Today, Mercedes-Benz U.S. International (MBUSI) employs more than 6,000 people and secures an estimated additional 60,0001 jobs with suppliers and service providers in the region, including 200 suppliers located in Alabama.
"With the integration of a further model we’re taking a further step in our local-for-local approach, enhancing the integral role of our Tuscaloosa plant within our flexible digital global production network." Jörg Burzer, Member of the Board of Management of the Mercedes-Benz Group AG, responsible for Production, Quality & Supply Chain Management
About Mercedes-Benz in the United States
Mercedes-Benz, with its strong heritage dating back to 1888 in Long Island City, NY, stands as the legacy car brand with the longest representation in the United States. As a major local investor, Mercedes-Benz has committed over USD 10 billion to production, infrastructure, R&D, design, and the dealer network, including USD 7+ billion in our Tuscaloosa, AL, site and USD 560+ million in our Charleston, SC, plant. We proudly support more than 163,000 jobs across the country, including 11,100 direct jobs (of which around 8,000 are in manufacturing) and 28,000 dealership employees. Our nationwide presence spans 385 dealer partners and 24 corporate locations in 13 states.
From an assembly operation standpoint, more than 4.5 million vehicles have left the Tuscaloosa plant over the past 28 years, with roughly sixty percent of annual output exported, making Mercedes-Benz one of the largest exporters of automobiles from the U.S. The USA is also the second largest global market for Mercedes-Benz Sprinter vans. Since 2006, Mercedes-Benz Vans, LLC (MBV Charleston) has assembled more than 400,000 vans for delivery across North America.
We are working with around 400 suppliers in the United States and are sourcing our local demand for steel and aluminum almost exclusively in the United States.
The Tuscaloosa operation is the global hub for our SUVs (Mercedes-Benz GLE, Mercedes-Benz GLS,Mercedes-Benz GLE Coupe, and Mercedes-Maybach GLS as well as the Mercedes-Benz EQS SUV, Mercedes-Benz EQE SUV, and the Mercedes-Maybach EQS SUV). Additionally, Mercedes-Benz is making EV infrastructure investments of approximately USD 1.2 billion to expand a high-speed charging network in North America over the next 6-7 years.
In 2024, we sold 324,500 passenger cars and 49,600 vans in the U.S., making the United States the second largest global market for Mercedes-Benz cars and vans.
As a pioneer and relentless innovator, we have filed nearly 100 technology patents in the U.S. and introduced DRIVE PILOT, the first SAE-Level 3 system for conditionally automated driving approved for Nevada and California. Mercedes-Benz is committed to being a good corporate citizen, actively supporting communities with nearly 40,000 hours of company-supported volunteer work in 2024 alone.
Press information and digital services for journalists and multipliers can be found on our Mercedes-Benz Media online platform at media.mercedes-benz.com.
Mercedes-Benz AG at a glance
Mercedes‑Benz AG is part of the Mercedes‑Benz Group AG with a total of around 175,000 employees worldwide and is responsible for the global business of Mercedes‑Benz Cars and Mercedes‑Benz Vans. Ola Källenius is Chairman of the Board of Management of Mercedes‑Benz AG. The company focuses on the development, production and sales of passenger cars, vans and vehicle-related services. Furthermore, the company aspires to be the leader in the fields of electric mobility and vehicle software. The product portfolio comprises the Mercedes‑Benz brand with Mercedes‑AMG, Mercedes‑Maybach and G‑Class with their all-electric models as well as products of the smart brand. Mercedes‑Benz AG is one of the world's largest manufacturers of high-end passenger cars. In 2024 it sold around 2,4 million passenger cars and vans. In its two business segments, Mercedes‑Benz AG is continually expanding its worldwide production network with more than 30 production sites on four continents, while gearing itself to meet the requirements of electric mobility. At the same time, the company is constructing and extending its global battery production network on three continents. As sustainability is the guiding principle of the Mercedes‑Benz strategy and for the company itself, this means creating lasting value for all stakeholders: for customers, employees, investors, business partners and society as a whole. The basis for this is the sustainable business strategy of the Mercedes‑Benz Group. The company thus takes responsibility for the economic, ecological and social effects of its business activities and looks at the entire value chain.
¹Based on estimates from the Center for Automotive Research (CAR) that every direct job in vehicle manufacturing supports 10.1 additional American jobs.
