Mercedes-Benz announces it will add a new vehicle for production at Alabama plant

German car company Mercedes-Benz on Thursday announced plans to add a "core segment vehicle" to its plant in Tuscaloosa, Alabama, as it beefs up its presence in the United States amid pressure from the Trump administration.

The administration on Monday said it would allow foreign car companies to apply for 15% price offsets in the first year of its 25% tariffs on imported automobiles and auto parts. They can also apply for a 10% decrease in the second year.

The luxury car brand did not specify what vehicle it would add to the plant, which currently produces SUVs, but the new vehicle is expected to be added by 2027. 

“Tuscaloosa has been a key hub for Mercedes-Benz vehicles for almost 30 years," Ola Källenius, chair of the board of management of Mercedes-Benz Group AG, said in a statement. "It’s a natural step to bring a further model to Alabama as part of a strategy to deepen our commitment to the United States, a market, which has been our home for more than a century.”

The announcement comes the same day President Donald Trump delivered the commencement address at the University of Alabama, which is located in Tuscaloosa. 

Alabama GOP Gov. Kay Ivey applauded the move in a post on X, claiming it shows the state is "the place to lead."

"Their decision to launch production of a new core vehicle in Tuscaloosa shows global companies have confidence in our state and workforce," she added.

Misty Severi is a news reporter for Just The News. You can follow her on X for more coverage.