Mercedes-Benz will invest $4 billion in Alabama plant amid Trump’s auto tariffs
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German carmaker Mercedes-Benz said Tuesday it will invest $4 billion in its Alabama plant through 2030 to boost SUV production as it tries to cope with higher US auto costs.
In total, luxury car maker Mercedes-Benz said it plans to invest more than $7 billion in American jobs in the coming years.
The company is moving up to 500 jobs from locations across the country to a new, state-of-the-art research and development facility in Atlanta.
Automakers are facing higher tariffs imposed by President Donald Trump on imported cars and parts.
AS TRUMP MAKES AUTOMATIC TAXES, MERCEDES TO BE MADE AT ALABAMA PLANT
Mercedes-Benz plans to invest $4 billion in its Alabama manufacturing facility. (Photos by Carol M. Highsmith/Buyenlarge/Getty)
Mercedes-Benz said last year that it would move the production of its GLC SUV from Germany to Tuscaloosa, Alabama.
In February, Mercedes said the group’s operating profit more than halved to 5.8 billion euros ($6.9 billion) in part due to a $1 billion tax charge.
Mercedes said U.S. passenger car sales rose 1 percent to 303,000 last year.
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| A ticker | Security | Finally | Change | Change % |
|---|---|---|---|---|
| MBGYY | The company MERCEDES-BENZ GROUP AG | 15.25 | +0.52 |
+ 3.53% |
The CEO of Mercedes North America, Jason Hoff, said in a recent interview with Reuters that the planned move of the GLC is partly due to cost.
Local production of high-volume products “makes good business sense,” Hoff said, citing the cost impact.
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Early last year, Mercedes-Benz said that lower tariffs – or even zero tariffs – between the US and the European Union would allow the company to increase investment in the US even more.
Mercedes-Benz plans to expand its footprint in the US as a way to reduce tax costs. (Elijah Nouvelage/Reuters)
Mercedes-Benz CEO Ola Källenius said in February 2025 that the company “has been operating in the United States for more than 120 years” and explained the details of the American company.
“We have two major operations that have been carried out passenger car On the side, one in Alabama and one in South Carolina,” said Källenius. “Specifically, we employ more than 11,000 people in the United States. If you count all the suppliers and those dependent on those final assembly jobs, the general count is about 1 to 10, so another 100,000 jobs are associated with those plants. Our retail partners, strong independent investors across the country, employ 28,000 people and also have a net impact. “
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“Several hundred thousand jobs, tax revenue, etc. is a Mercedes-Benz brand in the US,” he explained. “What am I doing? The point is that we are an American company. Yes, we have our headquarters in Germany and our European origins, but we feel American.”
Reuters contributed to this report.
