German carmaker Mercedes-Benz said on Tuesday it will invest $4bn (R67,564,714,400) at its Alabama plant through to 2030 to boost SUV production as it seeks to address significant US auto tariffs.
In total, luxury carmaker Mercedes-Benz said it plans to invest more than $7bn (R118,227,186,700) in US operations in the coming years. The company is moving up to 500 jobs from locations across the country into a new state-of-the-art research and development hub in Atlanta.
Carmakers face steep tariffs imposed by President Donald Trump on imported vehicles and parts.
Mercedes-Benz said last year it would shift production of its GLC SUV from Germany to Tuscaloosa, Alabama. In February, Mercedes said group operating profit more than halved to €5.8bn (R116,535,117,060) in part due to €1bn (R19,543,800,000) in tariff costs.
Mercedes said US passenger car sales rose by 1% to 303,000 last year.
Jason Hoff, Mercedes North America CEO, in a recent interview with Reuters, said the planned move of the GLC is in part because of tariffs.
Having localised production for the biggest volume products “makes good business sense”, said Hoff, citing the influence of tariffs.
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