•   Mercedes Benz will shift production of their GLC (compact SUV) to Tuscaloosa, Alabama, away from Bremen, Germany.
  • Previously, the German automaker had shifted manufacturing of large SUV lines to the USA to avoid the pre-existing 25% ‘chicken tax.’  However, the smaller and less expensive crossover types were still made in Germany and shipped to the USA.  As the shipping vessels returned to Germany, they would take some of the SUV inventory back with them.  It was the most cost-effective solution, given the nature of the tariff situation.
  • Now, with larger import tariffs against all vehicles, Mercedes has shifted their business model to essentially an outcome where all USA marketed/sold vehicles will be manufactured in the USA, and all EU marketed/sold vehicles will be manufactured in Germany.
  • (Via Daily Mail) – 
  • Within the U.S. market, Mercedes Benz now has a strategic advantage over their German rival, BMW.
  • source: theconservativetreehouse.com

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