Mercedes jumped into electrification with both feet but is now learning that buyers aren’t quite as excited about its more expensive models as it is. The automaker is eying plans to move production of the flagship EQS electric SUV to Germany to make room at its Alabama facility for a higher-volume EV.
Sources told Automotive News that the automaker is clearing the way for the GLC EV, an SUV scheduled to start production in early 2026. Mercedes could reach 50,000 vehicles in the first year of manufacturing the GLC EV, and the EQS’ move to Germany will add 20,000 vehicles to the Bremen factory.
Beyond logistics, the move makes great financial sense for Mercedes. Moving a higher-volume, less-expensive model to the U.S. makes it eligible for tax credits and more attractive to buyers. It will also help the automaker meet its goal of having electric vehicles account for 40 percent of sales by 2026. It had reached a little more than 14 percent through the first nine months of this year.
Despite its lofty goals, Mercedes still has to contend with consumer demand, which has been a hot topic in recent months. Automakers have announced heavy losses on EV business units, and some have committed to a more robust mix of hybrids to reduce their fleets’ carbon footprints. An improving charging network and slowly falling prices should help, but goals aside, Mercedes needed the cheaper model to remain competitive.
[Image: Mercedes-Benz]
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