Mercedes to invest $4 billion in Alabama plant, marks 5 millionth vehicle built in state
VANCE, Alabama – Mercedes-Benz plans to invest $4 billion at its Tuscaloosa County plant by 2030, as the German automaker continues to build on a legacy that launched Alabama’s dynamic automotive industry.
Company officials announced the move today at a ceremony where they also unveiled the latest versions of the GLE and GLS SUVs and marked a production milestone of 5 million vehicles at the facility in Vance.
Mercedes selected Alabama for its first U.S. plant in 1993, then in 1997 debuted the pioneering M-Class SUV that put the state’s auto workers in the international spotlight.
Today, the operation known as Mercedes-Benz U.S. International employs about 5,800 people and represents an investment of more than $7 billion. The plant regularly exports about 60 percent of its annual output, sending Alabama-made luxury vehicles to markets around the world.
In the body shop, the individual sheet metal parts, which were previously manufactured in the press shop, are assembled into a complete body-in-white.
Governor Kay Ivey credited the company’s strategic vision and its expert Alabama workforce for the continued investment in the state.
“Thirty years ago, Mercedes-Benz changed the landscape of Alabama, and there is no doubt that Alabamians have changed the landscape of Mercedes-Benz,” the governor said. “We are excited and proud to see that transformational partnership going strong into another decade as our state leads ingenuity and innovation in the global automotive industry.”
Today’s ceremony, punctuated by a performance from the University of Alabama’s Million Dollar Band and an appearance by former Alabama head football coach Nick Saban, celebrated not only the high-quality products and highly-skilled workforce but also the company’s deep roots in a community that has embraced the global automaker.
Ola Kaellenius, Mercedes-Benz CEO and Chairman of the Board of Management, is a former head of MBUSI and also was part of the original team at the Alabama plant in the 1990s.
Kaellenius said he knows firsthand the commitment of the local workforce.
“These vehicles don’t just carry the Mercedes star. They carry the passion, precision and pride of an entire region,” he said. “This state and the spirit of its people have always been an inspiration to us.”
Michael Schiebe, Board of Management member overseeing production, quality and supply chain management, said the care and craftsmanship of the workforce is evident in every vehicle.
“This plant has built something remarkable, not just cars but a legacy,” he said.
Schiebe said the new $4 billion investment signals the company’s strong commitment to the Alabama plant.
“We believe in Tuscaloosa. We are staying, we are growing, we are committed,” he said.
Alabama Department of Commerce Secretary Ellen McNair said Mercedes’ continued investment in the state the sends a clear message about Alabama’s leading role in the global auto industry.
“Mercedes-Benz is a true Alabama success story that is an example for companies across our state and those who have yet to call us home,” McNair said. “With each expansion and each new model, this elite auto plant, its workforce and the surrounding supportive community have risen to the challenge and far surpassed expectations. We are eager to see the future unfold at MBUSI, powered by yet another significant capital investment in our state.”
Today’s ceremony also drew other Mercedes-Benz board members, U.S. Transportation Secretary Sean Duffy, Alabama’s U.S. Senators Katie Britt and Tommy Tuberville and state and local officials.
Mercedes’ selection of Tuscaloosa County as the site of its first U.S. factory was a strategic move for the company that set the foundation for Alabama’s automotive industry.
In the years since, automakers Honda, Hyundai and Mazda-Toyota have built their own vehicle assembly plants in Alabama, adding to a sprawling network of suppliers and support services. Combined, the state’s automotive assembly lines now build more than 1 million vehicles per year, putting Alabama among the top states for U.S. auto production.
Mercedes’ current production lineup in Alabama includes the GLE, GLS and GLE Coupe SUVS, along with AMG performance variants and the Mercedes-Maybach GLS. The plant also produces the all-electric EQE SUV, EQS SUV and Mercedes-Maybach EQS SUV.
In addition, the GLC SUV is headed to the Tuscaloosa County assembly lines in the next few years.
Mercedes’ $4 billion investment in Alabama is part of a total U.S. investment of more than $7 billion. Along with the Alabama plant, the automaker’s U.S. presence includes a van assembly operation in South Carolina, a U.S. headquarters and research and development hub in Atlanta and a network of dealers across the country.
