Mercedes-Benz has confirmed plans to manufacture the next generation of the Mercedes-Benz GLC in the United States, reinforcing the strategic importance of its Tuscaloosa, Alabama facility within the company’s global production network. The move forms part of a broader investment plan that will strengthen the automaker’s North American manufacturing footprint over the coming years.
The Tuscaloosa plant has been central to Mercedes-Benz operations in the U.S. since the early 1990s, when the company became the first international automaker to establish production in Alabama. Originally built with a capacity of about 60,000 vehicles annually, the facility has grown significantly and can now produce up to 300,000 vehicles per year. It currently manufactures models such as the Mercedes-Benz GLE and Mercedes-Benz GLS, along with electric SUVs including the Mercedes-Benz EQE SUV and Mercedes-Benz EQS SUV. The plant recently marked a milestone with the production of its five millionth vehicle, a 2027 GLE.
As part of its long term strategy, Mercedes-Benz plans to invest approximately $7 billion across the United States by 2030, including around $4 billion specifically directed toward expanding operations in Tuscaloosa. Production of the next generation GLC is expected to begin after prototype builds start around 2028, with full scale manufacturing targeted for 2029. Initially, vehicles assembled at the Alabama plant will serve the U.S. market, although exports to other regions may follow in the future.
The decision to localize GLC production reflects both economic and logistical considerations. While import tariffs played a role in shaping the strategy, company leadership emphasized that the move aligns with a broader “local for local” manufacturing approach that prioritizes building vehicles close to key customer markets. The United States remains one of the most important regions for the GLC, making domestic production a practical long term solution.
The investment also highlights the importance of North American supply chains to Mercedes-Benz’s operations. The Tuscaloosa facility already relies on a strong regional supplier network, but additional partnerships are expected to support future production volumes. Company leaders noted that the evolving framework of the United States–Mexico–Canada Agreement will remain an important factor influencing supply chain planning across the continent.
Since beginning operations in Alabama nearly three decades ago, the Tuscaloosa plant has expanded from roughly 1,100 employees to about 5,800 workers today. The addition of the next generation GLC is expected to further strengthen the site’s long term role in Mercedes-Benz’s global SUV production strategy and reinforce its commitment to manufacturing in the United States. Credit: MotorTrend.
