Mercedes-Benz Prepares for Trade War by Investing in US, Emphasizing American Workforce
Stuttgart, Germany - Amidst the escalating trade tensions with the United States, Mercedes-Benz is implementing strategies to mitigate potential tariffs and maintain its presence in the US market.
"We're also an American company," emphasized Ola Källenius, CEO of Mercedes-Benz, in a video call with reporters. "We have two major passenger car operations in Alabama and South Carolina, directly employing over 11,000 people in the US."
Beyond these domestic operations, Källenius highlighted the company's substantial exports from the US, with two-thirds of vehicles produced at the Tuscaloosa plant being shipped overseas. "We are committed to continuing to invest billions in the United States and growing our footprint," he stated.
To bolster profits in the face of potential tariffs, Mercedes-Benz announced plans to reduce production costs by 10% by 2027. The company is also doubling down on its electric and hybrid vehicle offerings, which are less susceptible to import tariffs.
Källenius emphasized the importance of recognizing the company's deep American roots and its significant contributions to the US economy and workforce. He urged the Trump administration to consider these factors when evaluating trade policies.
The automotive industry remains on high alert as President Trump considers implementing tariffs on imported vehicles. Mercedes-Benz joins other automakers in expressing concern about the potential negative impact on the sector, including increased costs for consumers and job losses.