U.S.-Built Mercedes-Benz Models to Become More American

Call it the Americanization of Mercedes-Benz. While the German automaker has assembled C-Class, GLE and GLS models in Alabama for some time (and, more recently, Sprinters in South Carolina), recent pressure from the Trump administration has led the automaker to reconsider what goes into those vehicles.

After being characterized by President Trump as “very bad,” it’s possible other German automakers operating in the U.S. could follow Mercedes’ lead in a bid to avoid further heat.

According to The Wall Street Journal, Mercedes-Benz parent company Daimler AG has announced it will source more parts from U.S. suppliers. The automaker recently told suppliers it “sees value” in securing components from areas closer to its Tuscaloosa assembly plant.

For Mercedes, the timing of the move implies it has more to do with politics than logistics or cost. Trump claims a $15.4 billion automotive trade deficit exists between the two countries, lumping Mercedes-Benz in with BMW and Volkswagen as automakers which import more vehicles than those produced on U.S. soil. In total, about 28 percent of those automakers’ vehicles sold in the U.S. are built in the U.S.

While Trump has mentioned his desire for a border tax on automobiles, automakers are awaiting the results of North American Free Trade Agreement negotiations scheduled to begin in late summer. Automotive organizations have appealed to Trump in the hopes of avoiding changes to the rules of origin law.

Already, Mercedes-Benz models made in America are fairly American. Data from the National Highway Traffic Safety Administration shows 60 percent of a GLS’ parts originate in the U.S. or Canada. That percentage rises to 80 with the C-Class.

[Image: Daimler AG]