Mercedes-Benz has announced plans to invest $4 billion into its manufacturing plant in Tuscaloosa County, with the project extending through 2030. The announcement was made during a ceremony at the company’s facility in Vance, where executives also unveiled updated GLE and GLS SUV models and celebrated the production of the plant’s five-millionth vehicle since opening in 1995.
The investment is part of a broader commitment by Mercedes-Benz to spend more than $7 billion across its U.S. operations by the end of the decade. A key component of the plan includes shifting production of the GLC SUV from Germany to Alabama, a move aimed at increasing domestic output of high-demand models and strengthening the company’s presence in the American market.
The Tuscaloosa facility, known as Mercedes-Benz U.S. International, currently employs around 5,800 workers and produces several popular models, including the GLE, GLS, and Maybach variants. The addition of the GLC SUV is expected to expand the plant’s role in the company’s global production network. Since selecting Alabama for its first U.S. manufacturing site in 1993, Mercedes-Benz has played a significant role in establishing the state as a major automotive production hub.
Company leadership highlighted the importance of the Alabama plant during the announcement. CEO Ola Källenius praised the workforce and the region’s contribution to the brand’s success, while Kay Ivey emphasized the long-standing partnership between the automaker and the state. The expansion also comes amid ongoing tariff pressures, with executives noting that increasing localized production is a practical response to evolving trade conditions.