Mercedes may produce one more model at its US plant
- Following the announcement of future 25% tariff (in addition to existing tariffs) on car imports from Europe, the Mercedes Group announced that it is considering producing an additional model at its US plant in Tuscaloosa, Alabama. Currently, this plant produces the Mercedes GLE (171,333 units in 2024), GLS (46,558 units), EQE (37,974 units), and EQS (24,539 units) large SUVs for the world, as well as the Sprinter lighht truck (55,111 units) for the US market only. In total, the Tuscaloosa plant produced 335,515 vehicles in 2024, with a production capacity set at 350,000 units per year.
- On the other hand, Mercedes imported 201,194 vehicles from Europe in 2024, with the highest sales volumes recorded by the Mercedes GLC (64,163 units), C-Class (35,590 units), GLA (19,079 units) and E-Class (17,638 units).
- We may be tempted to think that one of these four models could be produced in the Tuscaloosa plant for the American market, but in any case it would be necessary to increase the plant's production capacity, to 400,000 vehicles per year for example.
- The most logical solution for Mercedes would be to add the Mercedes GLC SUV (D-segment) to the assembly lines of the Tuscaloosa plant, as it is the brand's most imported model from Europe, slightly more profitable than the smaller GLA SUV (C-segment). And this model would fit well into the plant's overall production of 400,000 units per year.
- But the carmaker could ultimately choose a sedan, either the C-Class (D segment) already produced in Tuscaloosa between 2014 and 2020, or the E-Class (E segment) with a higher margin but half as popular on the US market as the C-Class.