Mercedes is set to expand its plant in Tuscaloosa, Alabama, US, to include the production of the GLC SUV for the North American market.
This move is set to deepen the German automaker’s commitment to the US, as reported by Reuters.
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The Alabama facility, which serves as Mercedes’ hub for SUV manufacturing, currently produces models such as the GLE, GLS, GLE Coupe, and Maybach GLS.
The addition of the GLC, which is presently built in Bremen, Germany, is expected to further enhance the plant’s production capabilities.
During a media call on Monday, Mercedes executives did not disclose the investment amount for the new production line, stating that the project is still in the planning phase.
A Mercedes spokesperson was quoted by the news agency as saying: “No significant changes to the average total production figures in Bremen are expected in the medium-term. Bremen will still produce the GLC for the rest of the world,” and the Alabama plant “will localise GLC production for demand in North America.”
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By GlobalDataThe company also decided to localise production of this core vehicle segment by 2027 aligns with its strategy to strengthen the Alabama site, celebrating three decades of operation.
In financial terms, Mercedes-Benz Group has experienced a 7.4% decrease in revenue in the first quarter (Q1) of 2025, ending on 31 March, with figures dropping to €33.22bn from €35.87bn in the previous year.
The luxury automotive manufacturer cites negative net pricing effects, a slight dip in unit sales, and a reduced component business with Beijing Benz Automotive as contributing factors.
Furthermore, the company’s net profit has seen a significant downturn, with a 42.8% fall to €1.731bn in Q1 2025, compared to €3.025bn in the first quarter of 2024.
