Mercedes Is Building Its Electric Flagship in Alabama to Keep EVs Alive in America
Rewriting the EV Roadmap
Mercedes-Benz faced a lukewarm reception to its electric vehicles, with U.S. sales of its EQ lineup plunging 54 percent last year. Even so, the brand has no plans to abandon its EV push. Instead, the German marque has recalibrated its EQ portfolio to better suit market realities—and, thanks to localized production at its Tuscaloosa plant in Alabama, it can also sidestep the hefty import tariffs.
FRAME detailed how the Tuscaloosa facility has been assembling the EQS SUV since 2022, with battery packs manufactured at a nearby plant in Bibb County. The EQS SUV, which starts at roughly $90,000, is a full-size luxury vehicle that effectively serves as the brand’s all-electric flagship alternative to the fuel-fed GLS.
Inside the Alabama Assembly Line
The Tuscaloosa plant is outfitted as one would expect from a modern automotive assembly facility, including extensive automation and robotic paint operations. Production of EQ-branded vehicles also makes use of self-guided transport vehicles to move battery housing modules weighing approximately 900 pounds, along with a dedicated lift system that positions the high-voltage battery pack to simplify the installation of smaller modules. In addition, KUKA robots are employed to assemble critical electric drivetrain components.
On the assembly line, workers assist robotic systems in precisely aligning a subframe that houses the electric drive unit over the installed battery pack. Based on the current online configurator, the 2026 EQS SUV is offered exclusively with a dual-motor setup, with the range-topping 550 4MATIC variant producing 536 horsepower, enabling a 0–60 mph time of 4.6 seconds.
During quality inspections, technicians use handheld tablets to log and document data in real time. The plant also relies on Mercedes-Benz’s MO360 digital production ecosystem—developed in collaboration with Microsoft—which connects manufacturing facilities worldwide into a single, unified digital network designed to enhance efficiency and operational flexibility.
The Cost of Going Electric
With affordability becoming a growing concern in the U.S. market, selling electric vehicles remains a challenge, especially now that the $7,500 tax credit is gone. Mercedes’ most affordable EV currently offered stateside is the EQB SUV, which starts at around $53,000. That places it roughly in line with luxury rivals such as the Audi Q4 e-tron, though still well above popular competitors like the Tesla Model Y.
However, investing in a dedicated U.S. production line for the EQ lineup appears to be a step in the right direction, aligning the brand more closely with local industrial policy while improving logistics and supply chain. In addition to the EQS SUV, other electric models produced at the Alabama facility include the EQE SUV and the Mercedes-Maybach EQS SUV.
