Mercedes’ $7B U.S. push

Mercedes-Benz is putting more than $7 billion into its United States operations, with $4 billion of that earmarked for its Alabama plant through 2030. (reuters.com) The company said on March 31 it will use the Alabama spending to boost sport utility vehicle production, and Automotive News reported the plant will begin building the GLC compact crossover in late 2027. Mercedes announced a separate Alabama localization move on May 1, 2025, saying a new “core segment” vehicle would be built in Tuscaloosa in 2027. (reuters.com) (autonews.com) (businesswire.com) Tuscaloosa is already one of Mercedes’ biggest U.S. manufacturing bets. Mercedes says the site employs about 5,800 people, has produced more than 4.5 million vehicles since 1997, and exports around two-thirds of its annual output. (group.mercedes-benz.com) (businesswire.com) The Alabama complex is no longer just an assembly line for gasoline sport utility vehicles. Mercedes has built the EQE sport utility vehicle, EQS sport utility vehicle, and Mercedes-Maybach EQS sport utility vehicle there since 2022 and 2023, and its battery plant in nearby Bibb County supplies packs for those electric models. (group.mercedes-benz.com 1) (group.mercedes-benz.com 2) Mercedes is also shifting more of the car’s electronics and code in-house. The company says its Mercedes-Benz Operating System, or MB.OS, is an in-house, artificial-intelligence-powered software platform, and its 2025 annual report said the rollout of MB.OS had started as part of a program covering more than 40 new models by 2027. (group.mercedes-benz.com 1) (group.mercedes-benz.com 2) That combination changes what a factory expansion buys. A plant making more electric vehicles and software-heavy vehicles needs battery assembly, power electronics, testing systems, automation, and update-ready vehicle architecture, not just more stamping and paint capacity. (group.mercedes-benz.com 1) (group.mercedes-benz.com 2) (group.mercedes-benz.com 3) The timing also reflects pressure from U.S. trade policy and demand concentration. Reuters said Mercedes framed the Alabama investment as a way to address U.S. auto tariffs, while CNBC reported the company is targeting 400,000 annual U.S. retail sales by 2030, up from 303,200 last year. (reuters.com) (cnbc.com) Mercedes marked the Alabama announcement with another milestone: five million vehicles built at the Vance site. Alabama state officials said the plant now anchors about 200 in-state suppliers, while Mercedes said the operation supports an estimated 60,000 additional jobs in the region through suppliers and service providers. (madeinalabama.com) (businesswire.com) The next marker is 2030, when the Alabama build-out is due to be completed. By then, Mercedes is betting that a U.S. factory can do three jobs at once: build high-volume sport utility vehicles, assemble electric models, and serve as a software-enabled export hub. (reuters.com) (group.mercedes-benz.com)