OAN Staff Addie Davis
6:13 PM – Friday, April 3, 2026
Mercedes-Benz recently confirmed a major investment plan exceeding $7 billion for its U.S. operations, with the strategy extending through 2030.
The commitment is structured to strengthen domestic manufacturing and research capabilities, largely in response to evolving trade policies and the shift toward electrification.
At a Tuesday event premiering the new Mercedes-Benz GLE and GLS SUVs at their Tuscaloosa plant in Alabama, the company said $4 billion of that will be invested in that plant, according to a company press release.
The company’s global SUV production takes place at the Alabama facility, which has been in operation for 30 years, with roughly 60% of its output being exported. The event also celebrated the five-millionth SUV produced at the plant.
U.S. Secretary of Transportation Sean Duffy and U.S. Senators Katie Britt (R-Ala.) and Tommy Tuberville (R-Ala.) were present at the Tuesday event.
“We are deeply proud to be the strong hub of auto manufacturing in the South and continuing to be at the forefront of manufacturing and innovation across our great nation,” Britt said, according to the senator’s press release.
She also turned attention to President Donald Trump and Duffy.
“With President Trump and Secretary Duffy by his side, that partnership and leadership will advance the vision that will ensure our infrastructure, our transportation and the support continue to grow for Americans coast to coast,” she said.
In its press release, Mercedes-Benz highlighted that the U.S. is the company’s second largest market and has locations across 13 states, supporting hundreds of thousands of jobs, while noting that it’s “proud of its strong presence in the U.S.”
“The TRUMP EFFECT is real! Mercedes-Benz is pumping a whopping $4 BILLION at its plant in Tuscaloosa, Alabama. America is OPEN FOR BUSINESS,” he said.
The strategic shift follows a challenging fiscal period for the automaker; in February, Mercedes disclosed that group operating profits plummeted by more than 50%, falling to $6.9 billion. According to Reuters, this sharp decline was driven significantly by approximately one billion euros in unforeseen tariff expenses.
In an interview with Reuters, Mercedes North America CEO Jason Hoff said the tariffs are a factor in the planned move. Hoff added that the localized production of the biggest volume products “just makes good sense,” per the outlet.
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