Mercedes-Benz will invest $4bn in its Tuscaloosa, Alabama facility by 2030 to expand SUV production and localise a new model.

The German carmaker said the investment is part of a broader plan exceeding $7bn across its US operations in the coming years.

The Tuscaloosa plant, operational since 1997, has produced more than 4.5 million vehicles to date and will add a new core segment model from 2027, designed for US customer preferences.

The facility has developed into a key export base for SUVs, with approximately 60% of its output shipped to international markets.

In 2024, the plant produced around 260,000 vehicles, including the GLE, GLS, GLE Coupe, Mercedes-Maybach GLS, as well as the electric EQE SUV and EQS SUV.

The announcement coincides with the production of the plant’s five-millionth SUV, marking three decades of operations.

The milestone vehicle, a GLE, was unveiled alongside updated versions of the GLE and GLS models.

Separately, Mercedes-Benz is restructuring part of its US workforce by relocating up to 500 roles to a new research and development hub in Atlanta.

According to the company, the move is intended to enhance engineering capabilities and strengthen collaboration with institutions such as the Georgia Institute of Technology and the surrounding technology ecosystem.

The US remains the company’s second-largest market, with retail sales of 303,200 passenger cars and 40,000 vans recorded last year.

Mercedes-Benz Group management board chairman Ola Källenius said: “Tuscaloosa has been a key hub for Mercedes-Benz vehicles for almost 30 years. It’s a natural step to bring a further model to Alabama as part of a strategy to deepen our commitment to the US, a market, which has been our home for more than a century.”