German carmaker Mercedes-Benz has revealed plans to produce a core vehicle segment locally at its Tuscaloosa plant in Alabama by 2027, reinforcing its commitment to the US market.

The localisation of this core segment vehicle aligns with Mercedes-Benz's strategy of enhancing its Alabama site, which has been operational for 30 years.

Since 1997, the Tuscaloosa plant has produced over 4.5 million vehicles, with approximately 260,000 vehicles in 2024.

Mercedes-Benz Group board of management 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.”

The plant manufactures models like the GLE, GLS, GLE Coupe, and Mercedes-Maybach GLS, as well as EQE SUV, EQS SUV, and Mercedes-Maybach EQS SUV for global markets.

Mercedes-Benz North America CEO Jason Hoff added: “We are getting even closer to the US customer by localising a core segment model in Tuscaloosa, strengthening our ties to the North American market where a range of Mercedes-Benz vehicles including the GLE and GLS models have their roots.”

Currently, Mercedes-Benz US International (MBUSI) employs over 6,000 people, with an estimated 60,000 additional jobs supported by suppliers and service providers in the region.

This includes 200 suppliers located in Alabama, highlighting the plant's significant economic impact.

Mercedes-Benz Group board of management member responsible for production, quality & supply chain management Jörg Burzer said: "With the integration of a further model we’re taking a further step in our local-for-local approach, enhancing the integral role of our Tuscaloosa plant within our flexible digital global production network."

Also, Mercedes-Benz's first-quarter deliveries in 2025 dropped by 7%, with total sales of cars and vans reaching 529,200 compared to 568,400 in the previous year.