Mercedes-Benz is delaying plans to manufacture its best-selling GLC luxury crossover in the United States, pushing production at its Alabama plant to the second quarter of 2030. The postponement means the automaker will continue paying a 15% tariff on GLC models imported from Germany, increasing the financial pressure on its U.S. operations.
Mercedes GLC Remains the Company’s Best-Selling Model
The Mercedes-Benz GLC is the brand’s best-selling vehicle in the United States and worldwide. The automaker sold nearly 72,000 units in the American market last year, and 2026 is shaping up to be another strong year for the compact luxury crossover.
Mercedes dealerships also have substantial GLC inventory available, supporting continued sales of the popular model. However, maintaining strong sales does not necessarily mean the company is generating the profits it expects.
U.S.-market GLC models are currently imported from Bremen, Germany, with every vehicle facing a 15% tariff. These additional costs are taking a significant share of the revenue Mercedes generates from American sales.
Mercedes Pushes Alabama Production to 2030
Mercedes-Benz is investing $4 billion in tooling its Alabama plant to accommodate production of the GLC. The original schedule called for the first U.S.-built vehicles to arrive in December 2027, but the timeline has now been pushed back.
Production at the Alabama facility is instead expected to begin in the second quarter of 2030. This change means Mercedes will continue bearing the cost of import tariffs on the GLC for the next two years.
Why the Mercedes GLC Production Plan Changed
The delay appears to be connected to the current GLC’s position in its product life cycle. Introduced in 2022 for the 2023 model year, the vehicle will reach its sixth year by 2027 and will be approaching the end of its current generation.
Investing in production equipment for a model that is already approaching the later stages of its life cycle could create additional expenses for Mercedes.
“Investing in the plant for about half a life cycle and then having to retool for the next-generation GLC doesn’t make a lot of sense financially,” said Sam Fiorani, vice president of AutoForecast.
Under the original schedule, Mercedes could have been forced to retool the Alabama facility twice: first to accommodate the current GLC and later to prepare for its next generation.
Delaying production could help the company avoid that additional expense by aligning its manufacturing investment with the next GLC generation rather than spending heavily on equipment for a model nearing the end of its life cycle.
A Costly Wait for Domestic GLC Production
Although the revised timeline means Mercedes will continue paying import tariffs for longer, postponing production could reduce the need for repeated factory investments. The company is effectively weighing the immediate financial burden of tariffs against the potential long-term savings of a more practical manufacturing schedule.
For now, the GLC remains Mercedes-Benz’s leading seller in the United States and worldwide, while production of the American-built model is expected to wait until 2030.
