Production Pause Announced for EQ Models
Mercedes-Benz USA has confirmed it will pause production of its EQE and EQS electric sedans and SUVs for the U.S. market starting September 1. This includes all their variants. The automaker stated that the move is in response to evolving market dynamics.
Why the Sudden Halt?
The production pause aligns with the end of federal EV tax credits in the U.S., which expire on September 30, following recent legislative changes under President Trump’s budget bill. Mercedes informed dealers that order banks for these models have been closed. Vehicles already scheduled before September 1 will still be manufactured.
Where the EQs Are Made
The EQE and EQS SUVs are produced in Tuscaloosa, Alabama, while the sedan variants are built in Germany and imported to the U.S. However, none of these vehicles qualified for EV tax incentives unless leased, affecting their market appeal.
Declining Sales and Harsh Critiques
The EQ line struggled to resonate with American buyers. Sales of the EQS sedan and SUV dropped by 52% in 2024 compared to the previous year. Critics pointed out that the EQ cars lacked the luxurious feel and refinement of traditional E-Class and S-Class models. Additionally, the ultra-sleek exterior design failed to appeal to Mercedes’ traditional customer base.
Mercedes’ Response to Market Shifts
A spokesperson emphasized the company’s ability to adapt quickly to changing markets, thanks to its global production network. While Mercedes did not elaborate on specific market conditions, the removal of tax credits and slow sales are believed to be key factors.
A Shift in EV Strategy
Mercedes is not stepping away from EVs entirely. Instead, it plans to revamp its approach by releasing battery-powered versions of existing models. The upcoming electric CLA-Class sedan and wagon, as well as a new electric GLC SUV, signal this new direction. These vehicles will likely have hybrid options, maintaining flexibility in a fluctuating market.
What This Means for Shoppers
If you’re considering a new EQE or EQS, act fast — production is wrapping up, and these models might soon be hard to find. On the upside, used versions of these vehicles are becoming significantly more affordable.
