Mercedes-Benz's Next Move: New Vehicle Production in Alabama

image
Mercedes-Benz's Next Move: New Vehicle Production in Alabama - Image for illustration purposes only
05-01-2025motortrend

What Will Alabama Produce?

Mercedes-Benz Group is gearing up to expand its U.S. production footprint. Ola Källenius, the chairman, recently announced that by 2027, 70% of the company’s production will be localized in the U.S., up from the current 60%. As part of this strategy, the Alabama plant is set to receive a new "core segment" model. While the company initially hinted at producing another C-Class or E-Class model, speculation is rife that it might be the GLC crossover, a model more fitting for the SUV-driven U.S. market.

Potential Models


- C-Class or E-Class: Previously hinted at by executives.
- GLC Crossover: More aligned with market demands, offering:
- Mild Hybrid
- Plug-in Hybrid
- AMG Performance
- Future MB.EA EV Platform

Alabama's SUV Legacy

Tuscaloosa, Alabama, has been pivotal to the Mercedes-Benz production strategy for nearly three decades. The plant, which started in 1997 with the M-Class SUV, has produced a range of models over the years, including the R-Class and GL-Class. Although the C-Class began production there, it moved to Germany in 2014. Currently, the plant focuses on producing SUVs: GLE, GLE Coupe, GLS Maybach, and the recently introduced electric EQS and EQE SUVs, a result of a substantial $1 billion EV investment.

Current Production and Employment


- Current Models: GLE, GLE Coupe, GLS Maybach, EQS SUV, EQE SUV
- New Additions: Mercedes-Maybach EQS SUV (2022)
- Workforce: Employs around 6,000 people, with a significant portion of the vehicles exported.

Summary

Mercedes-Benz's Alabama plant is on the verge of an exciting expansion as it prepares to introduce a new model to its lineup. While the specific vehicle remains under wraps, the GLC crossover seems a likely contender given its compatibility with U.S. market trends. This move underscores Mercedes-Benz’s long-term commitment to localized production in the United States, building on its rich history of SUV manufacturing in Tuscaloosa.

What Others Are Saying...

No comments yet