This photograph taken on November 21, 2024 shows a Mercedes star on the radiator of a classic car in the Mercedes-Benz Classic Center in Fellbach, southern Germany. Photo by THOMAS KIENZLE / AFP
Mercedes-Benz Group AG plans to move production of another vehicle to the US in response to President Donald Trump’s tariffs.
The German carmaker said in a statement that it will shift assembly of a "core segment vehicle” to its factory in Tuscaloosa, Alabama, by 2027. It didn’t specify which model.
Mercedes’ most popular import in that category is the GLC sport-utility vehicle, which sold 64,163 units in the US last year, an increase of 58%. Mercedes had said in April that it was considering moving some production due to added costs stemming from the duties.
Trump earlier this week signed a pair of directives easing the impact of his tariffs on the automotive industry following weeks of lobbying. A basic 25% levy remains in place, and the toll on the industry is growing, with General Motors Co. on Thursday citing an exposure of as much as $5 billion.
Mercedes is also considering withdrawing its least expensive cars from the US because tariffs will make their sales economically unfeasible, Bloomberg reported last month.
The Tuscaloosa plant made around 260,000 vehicles in 2024, Mercedes said, including the GLE, GLS, GLE Coupe and Mercedes-Maybach GLS.
The site also makes some vehicles for export from the US, including the EQE SUV, EQS SUV and Mercedes-Maybach EQS SUV for all global markets, the carmaker said.
Mercedes touted its US presence in the statement, saying it employs more than 11,000 people in the country and works with some 400 suppliers there.
Markets were closed in Frankfurt on Thursday for a holiday. Mercedes shares have fallen 2.5% so far this year amid investor concern around the effect of tariffs.
