Mercedes-Benz is set to inject $4 billion into its plant located in Vance, Alabama, by 2030. This significant investment was announced during a ceremony that also showcased new GLE and GLS SUV models and marked the plant’s five-millionth vehicle produced since its inception in 1995.
This investment is part of a larger strategy to allocate over $7 billion towards U.S. operations by 2030. A key aspect of this plan involves moving production of the GLC SUV from Germany to Alabama, which will enhance the output of popular vehicle models.
Mercedes-Benz U.S. International (MBUSI) currently employs around 5,800 individuals and is responsible for assembling several models, including the GLE, GLS, and various Mercedes Maybach series.
The GLC SUV is anticipated to be added to the plant’s production lineup in the near future.
Alabama was chosen as the location for Mercedes’ first U.S. manufacturing facility back in 1993, with M-Class SUV production commencing in 1997, laying the groundwork for the state’s automotive sector.
The Tuscaloosa plant significantly contributes to Alabama’s overall vehicle production, which exceeds 1 million vehicles annually, alongside other manufacturers like Honda, Hyundai, and Mazda-Toyota.
During the announcement, Ola Källenius, the CEO of Mercedes-Benz, commended Alabama’s pivotal role in the company’s production process. He stated, “These vehicles don’t just carry the Mercedes star. They carry the passion, precision and pride of an entire region.”
Källenius emphasized that the new GLE and GLS models, in addition to upcoming electric SUVs and the domestically produced GLC, serve as symbols of their long-standing commitment to Alabama.
Governor Kay Ivey also lauded the automaker for its enduring investment in the state, remarking on the transformative partnership that has benefited both Alabama and Mercedes-Benz over the past three decades.
The announcement comes amid ongoing U.S. auto tariffs affecting imported vehicles and parts. Mercedes-Benz North America President Jason Hoff mentioned the rationale behind localizing production for high-volume models as being a wise business decision in light of tariff challenges.
Moreover, as part of a broader U.S. strategy, the company plans to transfer up to 500 jobs from other states to a new research and development hub in Atlanta.
