Mercedes-Benz Suspends Production of EQE and EQS Electric Models for the U.S. Market

According to reports from foreign media, starting September 1, Mercedes-Benz will suspend production of its EQE and EQS electric vehicle models for the U.S. market. The duration of the suspension and specific reasons have not yet been clarified. A spokesperson for Mercedes-Benz USA confirmed to InsideEVs that the company will indeed halt production of four electric vehicle models in the U.S. by the end of August. Dealers have been notified that the EQE and EQS sedans and SUV versions are no longer accepting orders. The spokesperson stated, 'Vehicles scheduled for production before September 1 will continue to be produced. This announcement only pertains to these models' U.S. market orders.' The suspension affects three factories. The SUV versions of the EQS and EQE are produced at the Tuscaloosa plant in the U.S., while the sedan versions are produced at the Bremen and Sindelfingen plants in Germany before being exported to the U.S. Production of these models for other markets, such as Europe, will continue as usual. It is unclear whether the decision to suspend U.S. market electric vehicle orders is related to the expiration of the U.S. electric vehicle tax credit policy at the end of September. The EQE and EQS models do not qualify for the U.S. electric vehicle tax credit unless leased. The spokesperson added, 'As a global company with over 30 factories, including those in Alabama and South Carolina, Mercedes-Benz adheres to a 'local production, local sales' strategy. We continuously optimize our production network to respond quickly to market changes.' If the SUV versions of these models are currently produced in the U.S. but sold to the European market, this contradicts the 'local production, local sales' strategy. Previously, Mercedes-Benz had predicted strong demand for these models in the U.S. SUV market, which influenced production arrangements. This could be another reason behind this decision, although the spokesperson did not specify the 'market changes' Mercedes-Benz is addressing. Since their launch, sales of the EQ series in the U.S. have been lackluster due to criticized design, interior quality not matching that of the E-Class and S-Class, range issues, and longer charging times compared to competitors. A report from InsideEVs noted that with the end of the U.S. electric vehicle tax credit policy, experts expect a significant decline in U.S. electric vehicle sales starting in the fourth quarter of this year, which will further worsen the situation for Mercedes-Benz’s already weak demand models. These models are still listed on Mercedes-Benz USA's customization page, but that status may soon change. The EQB SUV produced in Hungary (starting at $53,050) and the Maybach version of the EQS SUV (starting at $179,000) are also still listed. If the base EQS SUV confirms it will no longer be supplied to the U.S. market, its Maybach version is likely to be affected as well. Currently, there is no official adjustment statement regarding the EQB SUV. The future series of Mercedes-Benz electric models is expected not to be affected, with only the current EQE and EQS series facing production suspension. Furthermore, the new electric version of the Mercedes-Benz CLA is expected to launch in the U.S. market, along with the upcoming electric version of the GLC. Mercedes-Benz hopes these models, which adopt a more traditional design style and follow the naming convention of internal combustion engine versions, will achieve greater success than the EQ series.