NEW: European Automaker To Make investments $4 Billion In Pink State Manufacturing Plant
Mercedes-Benz has announced plans to invest $4 billion at its Tuscaloosa County plant in Vance, Alabama, through 2030. The German automaker confirmed the move on Tuesday during a ceremony at the facility that also featured the unveiling of updated GLE and GLS SUVs and the production of the plant’s five-millionth vehicle since operations began in 1995.
The investment forms part of a broader plan to commit more than $7 billion to U.S. operations by 2030. It includes shifting production of the GLC SUV from Germany to Alabama to increase local output of high-volume models, according to a report from Fox Business.
The Tuscaloosa plant, known as Mercedes-Benz U.S. International (MBUSI), currently employs approximately 5,800 workers and assembles a number of the automaker’s models, including the GLE, GLS, and several Mercedes Maybach variants.
The GLC SUV is also expected to join the plant’s lineup in the coming years.
Mercedes-Benz selected Alabama for its first U.S. manufacturing site in 1993. Production of the M-Class SUV began in 1997, which established the foundation of the state’s automotive industry.
The plant now contributes to Alabama’s output of more than 1 million vehicles per year alongside facilities operated by Honda, Hyundai, and Mazda-Toyota, according to figures from Made In Alabama.
At the announcement event, Mercedes-Benz CEO and Chairman of the Board of Management Ola Källenius, who previously led the Alabama plant in the 1990s, praised the state’s role in the company’s production.
“These vehicles don’t just carry the Mercedes star. They carry the passion, precision and pride of an entire region,” he said. “This state and the spirit of its people have always been an inspiration to us.”
He added that the new GLE and GLS models, along with existing electric SUVs and the upcoming localized GLC, “are symbols of our commitment to Alabama.
In the future, the localized GLC will further strengthen our U.S. footprint. And for me personally, this place isn’t just part of our company’s history as the first major plant outside Germany — it marks one of the most important chapters of my own Mercedes-Benz journey.”
Alabama Governor Kay Ivey also praised the company for their long-term commitment to the state. “Thirty years ago, Mercedes-Benz changed the landscape of Alabama, and there is no doubt that Alabamians have changed the landscape of Mercedes-Benz. We are excited and proud to see that transformational partnership going strong into another decade as our state leads ingenuity and innovation in the global automotive industry,” she said.
The announcement occurred amid U.S. auto tariffs on imported vehicles and parts. Mercedes-Benz North America CEO Jason Hoff noted that localizing production of high-volume models “just makes good business sense,” citing tariff impacts.
The company is also relocating up to 500 jobs from other U.S. locations to a new research and development hub in Atlanta as part of its broader U.S. strategy.