MBUSI To Manufacture New 'Core Segment' Vehicle Beginning In 2027

TUSCALOOSA, AL — Mercedes-Benz U.S. International (MBUSI) on Thursday announced it will manufacture a new core segment vehicle at its Vance plant beginning in 2027.

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A "core segment vehicle" is one manufactured for the main target market for a particular vehicle type or model — targeting a group of customers who are most likely to purchase that specific vehicle based on its characteristics, price point and intended use.

The German automaker says this expansion will further cement the Alabama facility's role in the company’s global production strategy.

"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.

MBUSI said the new model will be designed with U.S. customer preferences in mind and serve as a way to expand its local-for-local production approach.

“Tuscaloosa has been a key hub for Mercedes-Benz vehicles for almost 30 years,” Chairman of the Board of Management of Mercedes-Benz Group AG Ola Källenius said . “It’s a natural step to bring a further model to Alabama as part of a strategy to deepen our commitment to the United States.”

The Tuscaloosa plant has been in operation since 1997 and has produced more than 4.5 million vehicles while serving as the global export hub for several luxury SUV models, including the GLE, GLS, and EQ-series SUVs.

The plant in Vance produced approximately 260,000 vehicles last year.

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