Mercedes is making a significant move to expand its plant in Tuscaloosa, Alabama, US, to include the production of the GLC SUV for the North American market. This decision reflects the German automaker’s deepening commitment to the US market, as reported by Reuters.
The Tuscaloosa facility currently serves as Mercedes’ primary hub for SUV manufacturing, producing models such as the GLE, GLS, GLE Coupe, and Maybach GLS. By adding the GLC to its production lineup, which is currently manufactured in Bremen, Germany, the plant is expected to further enhance its production capabilities.
During a recent media call, Mercedes executives did not disclose the exact investment amount for the new production line, stating that the project is still in the planning phase. However, the company’s spokesperson mentioned that there will be no significant changes to the average total production figures in Bremen in the medium-term. Bremen will continue to produce the GLC for the global market, while the Alabama plant will localize GLC production to meet the demand in North America.
Mercedes’ decision to localize production of the GLC aligns with its strategy to strengthen the Alabama site, which is celebrating three decades of operation. This move demonstrates the company’s focus on enhancing its presence in the North American market and catering to regional demand.
In terms of financial performance, Mercedes-Benz Group experienced a 7.4% decrease in revenue in the first quarter of 2025, with figures dropping to €33.22 billion from €35.87 billion in the previous year. Factors contributing to this decline include negative net pricing effects, a slight dip in unit sales, and reduced component business with Beijing Benz Automotive.
Additionally, the company’s net profit saw a significant downturn, with a 42.8% fall to €1.731 billion in Q1 2025 compared to €3.025 billion in the first quarter of 2024. Despite these challenges, Mercedes remains focused on expanding its production capabilities in the US market and strengthening its position in the luxury automotive segment.
Overall, the expansion of the Tuscaloosa plant to include GLC production signifies a strategic move by Mercedes to meet the growing demand for SUVs in North America and further establish its presence in the region.
