Mercedes-Benz has committed $4 billion over the next three years to add capacity for its midsized GLC crossover vehicle at Vance, Ala. The strategy reportedly will help the automaker avoid the 15% tariff on imported vehicles that reportedly resulted in $1.2 billion in charges against profit for Mercedes in 2025.
The GLC is among the most popular Mercedes models with U.S. buyers, with sales increasing 20% from 2024 to 2025, a number estimated at 60,000 units.
In addition to expanding the Mercedes-Benz U.S. International in Alabama, the automaker plans to relocate about 500 product developers and technicians to an R&D center near Atlanta.
A subsidiary, Mercedes Vans LLC assembles Sprinter and eSprinter light commercial vehicles in North Charleston, S.C.
The Alabama plant celebrated the production of its 5 millionth vehicle on March 31, 29 years after the operations started. It currently has about 5,800 workers there, assembling GLE, GLS and GLE Coupe SUVS, AMG high-performance vehicles, the Mercedes-Maybach GLS luxury sedan, and all-electric SUVs and luxury vehicles.
Currently the plant is producing up to 300,000 vehicles per year, but volume is seen rising to 340,000 per year by 2030, once the expansion is complete.
