Automotive
Building cars in America has become an increasingly important strategy for foreign automakers looking to avoid costly import tariffs, but Mercedes-Benz is apparently willing to play the waiting game with one of its best-selling SUVs. The German luxury manufacturer has pushed back plans to produce the popular GLC-Class in the United States until May 2030, more than two years later than originally anticipated. According to Automotive News, the crossover was initially scheduled to begin production at Mercedes’ Vance, Alabama, assembly plant in late 2027. The delay means American dealerships will continue relying heavily on GLC models imported from Germany, leaving the automaker exposed to import duties that could affect pricing and profitability.
The decision reportedly comes down to timing and the substantial expense of preparing an assembly plant for an outgoing vehicle generation. Rather than investing in new tooling to build the current GLC for only a few years, Mercedes is expected to wait until the next-generation model is ready before beginning American production. Industry analyst Sam Fiorani of AutoForecast Solutions explained to Automotive News that retooling a factory twice within such a short period would make little financial sense. The Alabama facility already produces several of Mercedes’ larger SUVs, including the GLE, GLS, EQE SUV, and EQS SUV, making it a logical location for expanding production of the smaller GLC.
Unfortunately, that strategy comes with a potentially expensive downside. The GLC is one of Mercedes-Benz’s most important vehicles in the American market, and continuing to import it from Europe means the automaker remains exposed to the current 15% tariff on affected European vehicle imports. Mercedes has already outlined plans to invest approximately $4 billion in its Alabama manufacturing operations through 2030, partly to increase domestic SUV production and reduce its exposure to trade-related costs. Meanwhile, reports have suggested that the Trump administration could consider lowering tariffs on European vehicles to 10%, although no such reduction should be considered guaranteed. Whether Mercedes absorbs the additional costs or eventually passes some of them along to customers remains an important question.
From our perspective, delaying GLC production makes sense from a manufacturing standpoint, but it’s certainly a calculated risk in today’s unpredictable automotive market. Mercedes has spent decades building a substantial manufacturing presence in Alabama, and adding the GLC would help strengthen that investment while potentially improving its competitiveness against luxury rivals such as BMW, Audi, and Lexus. As also highlighted by Car and Driver, the delay doesn’t change Mercedes’ broader commitment to American manufacturing, but it does extend the period during which one of its most popular SUVs remains vulnerable to tariffs. For buyers, the immediate impact may be minimal, but we’ll be interested to see whether import costs eventually influence GLC pricing before American production finally begins in 2030.
Malcolm Hogan is the founder and editor of Automotive Addicts, a trusted voice in the automotive media world for over two decades. With 20+ years of hands-on experience covering the industry, Malcolm has built a reputation for delivering honest reviews, sharp insights, and in-depth coverage of everything from new car debuts to high-performance test drives. Passionate about the evolving car culture and staying ahead of the curve, Malcolm continues to lead Automotive Addicts as a go-to destination for enthusiasts and industry insiders alike.
