Great news company’: How Alabama’s automakers are preparing for Trump’s tariffs…read more
Alabama’s automotive industry is proactively addressing President Donald Trump’s proposed 25% tariffs on imported vehicles, aiming to mitigate potential impacts on production and pricing.
Mercedes-Benz plans to increase production at its Tuscaloosa, Alabama plant, focusing on models like the C-Class or E-Class. This strategy aligns with the company’s goal to localize 70% of its U.S. production by 2027, thereby reducing reliance on imports and shielding against tariff-induced cost increases. citeturn0search5
Similarly, Hyundai is enhancing its manufacturing capacity in the U.S. The company intends to expand its Georgia plant’s annual output from 300,000 to 500,000 units, incorporating hybrid vehicles alongside electric models. Additionally, Hyundai plans to leverage its Alabama facility, which currently produces 356,100 units annually, to bolster domestic production and counteract the effects of the proposed tariffs. citeturn0search4
These initiatives reflect a broader trend among automakers to localize production in response to tariff threats, aiming to maintain competitiveness and protect profit margins. The automotive sector is closely monitoring these developments, as the implementation of such tariffs could lead to increased vehicle prices and potential shifts in consumer purchasing behavior. citeturn0news13
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