An employee installs parts on the undercarriage of a Mercedes-Benz GLS-Class SUV at the Mercedes-Benz U.S. International factory in Vance, Alabama, on June 8, 2017.
Andrew Caballero-Reynolds | AFP | Getty Images
Mercedes-Benz on Thursday said it will add a new vehicle to its plant in Alabama amid President Donald Trump‘s auto tariffs.
The German automaker said it will localize production of the “core segment” vehicle at its plant near Tuscaloosa by 2027. Officials declined to disclose details of the vehicle, but the plant mostly produces Mercedes-Benz SUVs.
“We are getting even closer to the U.S. customer by localizing a core segment model in Tuscaloosa, strengthening our ties to the North American market where a range of Mercedes-Benz vehicles including the GLE and GLS models have their roots,” Mercedes-Benz North America CEO Jason Hoff said in a release.
A spokesperson for Mercedes-Benz declined to comment on whether the new vehicle in Alabama was a result of Trump’s tariffs, citing a “local-for-local strategy” of producing vehicles where it sells them.
The automaker said the Alabama plant has established itself as “the global export hub for Mercedes-Benz SUVs.” The company said roughly 60% of SUVs assembled at the plant are exported.
The announcement comes amid Trump’s ongoing 25% auto tariffs on imported vehicles, as well as additional levies of 25% on automotive parts that are scheduled to go into effect by Saturday.
Read More: Mercedes-Benz to add new vehicle to Alabama plant amid Trump tariffs