As President Trump comes to Alabama, Mercedes bets bigger on American manufacturing

On Thursday, Mercedes-Benz announced major plans to begin production of a new, forthcoming “core segment” vehicle at its Tuscaloosa plant in 2027.

“Tuscaloosa has been a key hub for Mercedes-Benz vehicles for almost 30 years,” said Ola Källenius, Chairman of the Board of Management of Mercedes-Benz Group AG.

“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.”

U.S. Senator Katie Britt (R-Montgomery) shared the news on Thursday, ahead of President Donald Trump’s visit to the University of Alabama, just miles away from the Mercedes plant.

Tremendous news! As President Trump visits the University of Alabama today, Mercedes Benz announced they’re moving a core production line to Tuscaloosa. Huge win for our state.https://t.co/IvVZEklo0Z.

— Senator Katie Boyd Britt (@SenKatieBritt) May 1, 2025

In Alabama, since its inception in 1997, the Mercedes-Benz facility has produced over 4.5 million vehicles, with approximately 260,000 rolling off the line in 2024 alone.

The expansion by Mercedes is driven in part by recently imposed 25% tariffs on imported vehicles by the Trump administration.

The White House reported on Thursday, as President Trump pushes to revitalize American manufacturing, automakers are responding.

BMW may add shifts in South Carolina, Honda is moving Civic production from Japan, Hyundai is investing $20 billion including a new Louisiana steel plant, Kia will build hybrids in Georgia, Nissan may shift production from Mexico, and Toyota plans to expand hybrid output in West Virginia.

TRUMP EFFECT — AGAIN! Mercedes Will Make Another Model in US to Counter Tariffshttps://t.co/kr7CWRZLkB

— Rapid Response 47 (@RapidResponse47) May 1, 2025

Alabama Governor Kay Ivey welcomed the announcement wholeheartedly.

“I just got off the phone with Mercedes-Benz North America CEO Jason Hoff, and the news is clear: Alabama is the place to lead,” Ivey reported. “Their decision to launch production of a new core vehicle in Tuscaloosa shows global companies have confidence in our state and workforce.”

I just got off the phone with Mercedes-Benz North America CEO Jason Hoff, and the news is clear: Alabama is the place to lead.

Their decision to launch production of a new core vehicle in Tuscaloosa shows global companies have confidence in our state and workforce. #alpolitics pic.twitter.com/XhSAWB6snl

— Governor Kay Ivey (@GovernorKayIvey) May 1, 2025

The expansion comes less than a year after workers at Mercedes-Benz’s Tuscaloosa County plant voted against joining the United Auto Workers, which firmly defended Alabama’s status as a right-to-work state with a non-union auto industry.

State leaders, including Governor Ivey, said the vote sent a clear message that Alabama remains committed to a pro-jobs, pro-investment climate — a key factor in the state’s continued success in attracting major manufacturing projects like Mercedes’ announcement today.

Grayson Everett is the editor in chief of Yellowhammer News. You can follow him on X @Grayson270.