In a time when trade tensions cast shadows on international markets, Mercedes-Benz CEO Ola Källenius recently emphasized the company’s long-standing roots in the United States, framing its operations as foundational to its identity. Speaking in Rome on March 20, 2025, during the launch of the new Mercedes CLA, Källenius highlighted, “Mercedes has been there for 120 years, almost as American as any other American company, and older than most American companies.” This assertion aimed to remind listeners of the brand’s deep historical ties to the U.S., amidst growing concerns over President Donald Trump's tariffs on imports from various nations.
Källenius articulated caution regarding escalating trade disputes, fearing they could disrupt the flow of goods, thus imposing economic burdens on both sides of the Atlantic. He stated, “An escalation in trade disputes could disturb the goods flows in both directions, which would be an economic burden.” The Mercedes leader clarified that because the company manufactures in the U.S., the tariffs do not affect vehicles produced and sold within the country. However, he elaborated that Mercedes-Benz also has operations in China and Europe, which could be impacted by the ongoing trade tensions.
The Mercedes-Benz footprint in the U.S. includes two major manufacturing facilities: one in Tuscaloosa, Alabama, and another in Charleston, South Carolina. The Tuscaloosa plant alone produced 260,000 vehicles in the past year and employs about 6,000 people, specializing in SUVs. Notably, around two-thirds of the production from this facility is designated for export, highlighting the significance of international markets for the German automaker.
In Charleston, the Sprinter van plant employs approximately 1,700 individuals, underlining Mercedes-Benz's commitment to American manufacturing. In total, the company sold 324,500 passenger cars and 49,500 vans in the U.S. during the previous year, underscoring its substantial presence in the American automotive market.
As trade policies evolve, Källenius expressed that Europe, particularly Germany, might face the most significant risks if markets were to close further. “If markets were to close, Europe could lose the most,” he remarked, reflecting the continent's reliance on exports since World War II. His comments suggest a recognition of the fundamental changes in global trade dynamics and the potential consequences for economic growth.
Indeed, Källenius is not alone in this belief. According to recent data from Germany's Federal Statistical Office, despite facing challenges, the nation’s automotive industry managed to increase its car exports in 2024, with 3.4 million vehicles sold abroad, marking a 2.5 percent rise from the previous year. Nevertheless, the total value of these exports fell by 1.3 percent to 135 billion euros, an indicator that the industry is navigating turbulent waters.
Electric vehicle exports saw a notable boost, expanding by 11.9 percent to reach 881,000, which constituted 25.9 percent of all exports. However, the automotive sector remains dominated by gasoline-engine vehicles, which still made up 42 percent of exported cars, totaling 1.4 million units.
The U.S. continued to be the most important market for German cars, capturing 13.1 percent of all exports, followed by the United Kingdom and France. In stark contrast, Germany experienced a decline in car imports, with a reduction of 11.5 percent in 2024, reflecting shifting consumer preferences and market conditions.
Moreover, it is striking that the import of purely electric vehicles fell dramatically, from 451,000 in 2023 to just 244,000 the following year, showcasing the complexities of trade relationships amidst evolving market demands.
As Mercedes navigates these multifaceted challenges, Källenius remains adamant about the importance of trade in driving economic growth. “Let’s not forget what has driven growth over the last 30 years. Trade has played an extremely important role,” he stated, reiterating the need for open markets and cooperation in these uncertain times.
Mercedes-Benz stands poised to adapt to the changing landscape but acknowledges the need for vigilance as trade policies continue to evolve. The ongoing trade discussions hold significant implications not just for Mercedes but for the broader automotive industry and its workforce, as the pressures of tariffs and global competition shape the future of American and European manufacturing.
