Mercedes-Benz to Begin U.S. Assembly of High-Volume GLC Model

Mercedes-Benz, the iconic German automaker known for luxury and innovation, is making a bold move to expand its U.S. production capabilities. By 2027, Mercedes plans to begin assembling a high-volume model, believed to be the GLC, at its Tuscaloosa, Alabama plant. This expansion is more than just logistical; it’s a strategic response to changes in global trade dynamics and escalating tariffs on imported vehicles. For car enthusiasts, Mercedes fans, and industry analysts alike, this marks a significant and exciting development.

Alabama Welcomes Another Mercedes SUV Model

Alabama might not be the first place that comes to mind when you think of Mercedes-Benz, but it’s been central to the brand’s U.S. production operations for nearly 30 years. The Tuscaloosa plant is already home to some of Mercedes’ most iconic SUVs, including the GLE, GLS, and their EQ-branded electric SUVs. Now, with plans to add a “core segment model” to its lineup, the plant’s importance continues to grow.

According to Jason Hoff, CEO of Mercedes-Benz North American operations, the move is another step toward strengthening ties with the U.S. market. “We are getting even closer to the U.S. customer by localizing a core segment model in Tuscaloosa.” This sentiment reflects the company’s commitment to meeting U.S. demand while navigating tariff challenges.

While no official confirmation has been given, speculation is buzzing that this “core segment model” will be the GLC, an SUV that has become a fan favorite in the U.S.

Why the GLC Makes Sense for U.S. Assembly

The GLC isn’t just any vehicle in Mercedes’ extensive lineup. It’s a powerhouse of the brand’s core category, boasting incredible popularity in the American market.

• 2024 sales success: Mercedes sold an impressive 64,163 GLCs in the United States, a 58% increase compared to the previous year.
• Critical market share: The GLC accounted for nearly 20% of Mercedes’ total U.S. sales in 2024.

With these numbers in mind, shifting GLC assembly to the U.S. isn’t just logical; it’s strategic. Producing this high-demand SUV domestically offers Mercedes the opportunity to mitigate tariffs, reduce shipping costs, and get vehicles into customer hands faster.

The term “core,” used within Mercedes’ segmentation strategy, also hints at the decision to localize GLC production. Core segment vehicles include the GLE, GLC, E-Class, and C-Class, a group carefully selected for their importance to Mercedes’ overall strategy and customer relevance.

An Already Thriving Production Hub

Tuscaloosa has long been a key player in Mercedes-Benz’s global production network. Known for its focus on luxury SUVs, the facility rolled out approximately 260,000 vehicles last year. These ranged from the GLE Coupe all the way to the ultra-exclusive Mercedes-Maybach EQS SUV and other electric models like the EQE SUV.

Beyond its domestic impact, the plant drives significant exports as well. Around 60% of the vehicles assembled in Alabama are shipped abroad, placing Mercedes-Benz alongside BMW as one of the foremost vehicle exporters in the United States.

The additional production of GLCs will further solidify Tuscaloosa’s position as a manufacturing powerhouse, likely increasing both output and workforce.

Global Tariffs and the Push for U.S. Manufacturing

Mercedes’ decision to localize GLC production also highlights the growing pressure automakers are facing amid global trade uncertainties. Tariffs on imported cars and car parts have climbed, leading companies like Mercedes to rethink their manufacturing strategies.

Mercedes isn’t alone in making bold moves within the U.S.; Hyundai recently announced a $21 billion investment in U.S. manufacturing. Such decisions signal a shift in how automakers balance international markets with local production demands. For Mercedes-Benz, assembling one of its highest-selling models directly in the U.S. could result in a stronger market presence while insulating the company from tariff-related volatility.

What This Means for U.S. Car Buyers

For American car buyers, this shift brings potential benefits.

• Faster deliveries: Local production will likely reduce the time it takes to get vehicles from the factory to the showroom.
• Stable pricing: Producing vehicles domestically could offset tariff-related price hikes, keeping GLCs more competitively priced.
• “Made in America” appeal: For customers who value domestically assembled products, this move aligns with their preferences.

Additionally, the focus on U.S. production strengthens Mercedes’ reputation as a forward-thinking automaker invested in serving its American audience directly.

Mercedes Tuscaloosa Plant and the Future

Tuscaloosa is already a busy hub, but the addition of GLC assembly could push it to new levels of strategic importance. Alongside traditional combustion-engine SUVs, the facility’s expanding portfolio of all-electric models showcases its versatility in an evolving automotive market.

This level of adaptability places Tuscaloosa in a pivotal position. With the GLC representing a significant share of Mercedes’ global sales, localizing production for this model is both a calculated risk and a forward-thinking solution to market demands and global challenges.

What Lies Ahead for Mercedes-Benz’s U.S. Operations?

Mercedes-Benz’s decision to bring GLC production stateside represents more than a logistical tweak. It’s a strong signal that the automaker is ready to step up in key markets, adapt to global challenges, and keep satisfying customer demand.

Amongst the backdrop of tariffs and supply chain disruptions, Mercedes is making a clear investment in ensuring its vehicles remain a staple of the U.S. market. Consumers can expect better accessibility to one of the brand’s most-loved SUVs, while the U.S.—specifically Tuscaloosa, Alabama—is set to play an even bigger role in the luxury automaker’s future.