Mercedes-Benz AG will not begin producing the GLC at its Vance, Alabama plant until May 2030, postponing the originally scheduled November 2027 start and forcing continued imports of the model from Germany.
According to Automotive News, which cites two people familiar with the company’s plans, the delay keeps the GLC reliant on German-built supply while Mercedes absorbs a 15% US import tariff on each vehicle. Mercedes declined to comment on the revised schedule.
The GLC will continue to be imported from Germany and remain subject to the 15% US import tariff.
Why Mercedes says it delayed localization
The decision follows internal cost calculations tied to the model’s generational changeover. Mercedes has committed about $4 billion to its US manufacturing operations, with one central element of that investment intended to localize GLC production. Company planners reportedly concluded that moving the outgoing GLC to the Alabama facility now would require another costly retooling when the next generation arrives, effectively doubling changeover expense.
Sam Fiorani of AutoForecast Solutions told Automotive News that preparing a production complex for a model approaching the end of its lifecycle would necessitate an additional expensive changeover when the successor launches, making the delay sensible from a financial standpoint.
Sales, model cycle and powertrains
The GLC represents a significant US volume for Mercedes, accounting for about one quarter of the brand’s passenger vehicle sales in the country. Mercedes sold nearly 54,000 GLC units in the United States between January 2026 and September 2026, more than the next three most-popular imported Mercedes models combined.
Internally designated V255, the next-generation GLC is expected to arrive by 2030. The outgoing 254 series debuted in 2022. Like the current series, the 255 lineup is anticipated to offer four- and six-cylinder engines and plug-in hybrid options; whether Mercedes will include a V8 variant has not been disclosed.
Mercedes has not provided an estimate of how much the extended reliance on German-built GLCs will add to its tariff bill, nor has the company said whether it will offset the cost through pricing, lower margins, or other efficiencies.
The Vance, Alabama complex, known as MBUSI, currently builds the GLE and GLS SUVs and also produces the EQE SUV and EQS SUV.
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