The United Auto Workers suffered a disappointing loss at a Mercedes-Benz factory in Alabama Friday, a setback for the union's plans to achieve broader gains in the U.S. South after winning a deal at a Tennessee Volkswagen plant in April.

The workers at the plant in Vance, Alabama, and a nearby battery facility voted 2,642 to 2,045 against joining the UAW, according to the U.S. National Labor Relations Board, which oversaw the vote. The vote still need to be certified.

"The result is obviously a big disappointment for the UAW," San Francisco State University labor professor John Logan said by email. "So far, everything had gone almost perfectly for the union’s new leadership, but the toughest challenges obviously lay ahead."

"Volkswagen did not fight aggressively against the union, but Mercedes did," he added.

The UAW had hoped to continue a run that includes the overwhelming VW win in Chattanooga, Tennessee, as well as a lucrative new contract at six Daimler Truck facilities across the South. Daimler Truck was spun off from what is now Mercedes.

A win at Mercedes would have marked the second foreign-owned automaker in the U.S. South to join the UAW, but instead the union will need to redouble efforts to win over workers in a region that has previously been inhospitable to unions. Widening its reach beyond the Detroit automakers is critical for the UAW to maintain its influence within the industry.

Until the UAW won overwhelmingly last month at the Volkswagen plant in Tennessee, the union had repeatedly failed to organize a foreign-owned automaker in the U.S. South for its nearly 90-year existence.

Much of the politically conservative South has treated left-leaning unions as enemies, passing laws that make it difficult to operate, and anti-union forces have warned that companies are more likely to close union factories. A previous UAW corruption scandal that resulted in the arrest of several leaders further eroded support.

VW workers twice voted against the UAW before last month's win, and Nissan workers at a plant in Mississippi rejected the UAW by a wide margin in 2017. In 2021, workers at an Amazon.com warehouse in Alabama voted against forming a union by a more than 2-to-1 margin.

The loss complicates the story of how the UAW can market its influence, especially in the South, but it likely will not deal a significant blow to the rest of the UAW's organizing efforts, labor experts said.

"It's easy to overstate the momentum issue," said Stephen Silvia, a professor at American University who has published on the UAW's past organizing campaigns in the South.

"Ultimately it comes down to what is going on in each individual workplace," he added, emphasizing how just as a win at Volkswagen did not guarantee a victory at Mercedes, this loss does not guarantee future defeats.

The company made its feelings clear in the run-up. Signs urging workers to vote "no" were hung around the plant, and the company hired anti-union firms to speak with workers about the potential risks of joining the UAW, according to workers, as well as photos and audio reviewed by Reuters.

Mercedes previously rejected claims it prevented union organizing efforts in Alabama.

"Our goal throughout this process was to ensure every eligible team member had the opportunity to participate in a fair election," Mercedes said in a statement after the vote.

"Our primary focus is always to provide a safe and supportive work environment for our team members, so they can build superior vehicles," the company added. "We look forward to continuing to work directly with our team members."

Political opposition was staunch in this campaign, too. Six U.S. governors, including Alabama's Kay Ivey, signed a letter asking workers to reject the UAW. They said unionization would stunt the auto industry's growth across the South.

Mercedes also brought in a new president of its U.S. business in the weeks leading up to the vote, a change that made some workers hopeful that conditions could improve without the union.

Workers on both sides had expected a close vote. Mercedes employee Kay Finklea, who is pro-UAW, said the company's messaging, including a recent anti-union push with a local pastor, had swayed some to vote "no."

With the loss, the UAW will need to wait at least a year before trying again, according to the NLRB. The union also has five days to file objections, alleging interference. If the NLRB agrees, the election could be rerun.

In the meantime, the UAW has filed a complaint with Germany's Federal Office for Economic Affairs and Export Control, charging the carmaker with violating workers' rights. German officials acknowledged receipt of the complaint.

Clinching a win at Mercedes had been a critical step in UAW President Shawn Fain's $40 million mission to organize more than a dozen automakers across the nation, including Toyota and Tesla. It also would have allowed the union to add to its dwindling ranks.

With these two elections done, and a loss at Mercedes, the next steps are more uncertain. There is initial organizing progress cited at a Hyundai plant in Alabama, and Toyota plants in Missouri and Georgetown, Kentucky.