German automaker Mercedes-Benz to invest $4 billion in Alabama SUV plant

By David Shepardson

March 31 (Reuters) - German automaker Mercedes-Benz MBGn.DE said on Tuesday it will invest $4 billion at its Alabama plant through 2030 to boost SUV production as it seeks to address significant U.S. auto tariffs.

In total, luxury automaker Mercedes-Benz said it plans to invest more than $7 billion in U.S. operations in the coming years. The company is moving up to 500 jobs from various locations across the country into a new, state-of-the-art research and development hub in Atlanta.

Automakers 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 5.8 billion euros ($6.9 billion) in part due to 1 billion euros in tariff costs.

Mercedes said U.S. 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 localized production for the biggest volume products "just makes good business sense," said Hoff, citing the influence of tariffs.