Mercedes-Benz is a vehicle brand familiar to almost anybody worldwide. Whether or not you drive one, have driven one or just seen them. Vehicle designs also seem to keep up with the times. Changing from your old-time classic to a more sleek, modern look and feel. The story of the company dates as far back as 1886. Mercedez-Benz is a global corporation which provides personal mobility in more than 200 countries. Starting out small in the beginning, there was a merger between Daimler-Benz and Chrysler during period 1995 to 2007. From there it grew and developed products and services to stay relevant with worldwide changes.
Taking Mercedes through to the future
The Mercedes-Benz Group AG is considered as one of the most successful automotive companies in the world. Premium vans and high-end passenger cars are provided to a huge client base. Other service offerings that the company relies on is leasing, financing, car rental, car subscription, fleet management, insurance brokerage, digital services for charging and payment as well as innovative mobility services.
Mercedes-Benz MBGn.DE will pause deliveries of its EQ electric range to the United States and cut prices of new EQ models there, the carmaker said on Wednesday, responding to slowing demand and high inventories at dealerships. Since President Donald Trump’s spending bill earlier this month cut tax EV credits sooner than anticipated, analysts have warned that the U.S. EV market would underperform expectations this year.
Production within the U.S. landscape
During the pause, Mercedes will run down EQ inventories in the U.S. and also supply cars made in its plant in Tuscaloosa, Alabama. Founded in 1995, the Tuscaloosa plant was the first major plant for the company which was based outside of Germany. Production at the plant has been quite impressive, with approximately 400 million vehicles off the assembly line since 1997.
The company also said it would cut the base price of its EQE and EQS sedan and SUV models in the U.S. between 4% and 16% starting with the 2026 model year, excluding delivery charges. The Mercedes-Benz EQS is a battery electric full-size luxury liftback vehicle. It was released into the German market during September 2021 and hit the US in the fourth quarter of 2021. This vehicle forms part of the overall EQ battery electric vehicle range.
Business projections based on demand
Mercedes CEO Ola Källenius told reporters on Wednesday that despite the slower trajectory, he expected U.S. consumers to buy more battery electric vehicles (BEVs) over time. Swedish German business executive Sten Ola Källenius holds the position as CEO as well as Chairman of the Board of Management of the Mercedes-Benz Group. He is the first non-German to hold both of these positions prior to him obtaining his German citizenship.
Presenting the company’s second-quarter results, he said: “We don’t believe that the BEV demand in the United States goes to zero: we still think that the medium to long-term adoption rate of BEVs in the U.S. will creep upwards.” The carmaker said in February that it would make more petrol and diesel cars than EVs in its new product range. It said it was targeting 19 new combustion engine models and 17 BEVs by the end of 2027, after its BEV sales dropped by a quarter last year.
It seems the decision made by Mercedes-Benz to suspend its shipments of the EQ EV range to the U.S was made due to the overflow of existing inventory at the dealerships. Plans are also set in place to reduce some of the base prices on the EQS as well as the EQE models by 4% to 16%. This will be implemented with the 2026 model year. There also seems to be an overall reduction in consumer interest as well as the removal of the EV tax credit that led to the decreased demand for the EVs.
GCN.com/Reuters.