Mercedes-Benz announced a planned $4 billion investment at its Tuscaloosa County vehicle assembly plant in Vance, Alabama, on March 31, 2026. The announcement coincided with the production of the facility’s 5 millionth vehicle and the unveiling of new versions of the GLE and GLS SUVs. Mercedes-Benz U.S. International (MBUSI) currently employs approximately 5,800 people and has received more than $7 billion in total investment since the company selected Alabama for its first U.S. plant in 1993.
What it means
The $4 billion commitment is scheduled to be completed by 2030, according to the company. The facility, which began production with the M-Class SUV in 1997, currently manufactures GLE, GLS, and GLE Coupe SUVs, along with AMG performance variants, Mercedes-Maybach models, and electric EQE and EQS SUVs. About 60 percent of the plant’s annual output is exported. The company stated that production of the GLC SUV is scheduled to begin at the Tuscaloosa County site in the next few years.
Ola Kaellenius, Mercedes-Benz CEO and Chairman of the Board of Management, attended the ceremony alongside Michael Schiebe, a Board of Management member overseeing production, quality, and supply chain management. Kaellenius was formerly head of MBUSI and part of the original Alabama plant team in the 1990s. Governor Kay Ivey credited the company’s strategic vision and the Alabama workforce for the investment. U.S. Transportation Secretary Sean Duffy and Alabama U.S. Senators Katie Britt and Tommy Tuberville also attended the event.
Alabama’s automotive assembly lines, which include plants operated by Honda, Hyundai, and Mazda-Toyota, build more than 1 million vehicles per year. Mercedes-Benz maintains a van assembly operation in South Carolina and a U.S. headquarters and research and development hub in Atlanta, contributing to a total U.S. investment of more than $7 billion.
Key facts
- $4 billion: Planned investment at the Tuscaloosa County plant by 2030.
- 5 million: Milestone number of vehicles produced at the Vance facility.
- 2030: Target year for completion of the new investment.
- 5,800: Approximate number of employees at Mercedes-Benz U.S. International.
- $7 billion: Total investment in the MBUSI operation and total U.S. investment for Mercedes-Benz.
- 60 percent: Share of annual output exported from the plant.
- 1 million: Number of vehicles built per year across Alabama’s automotive assembly lines.
Source: madeinalabama.com, reporting a Mercedes-Benz announcement