Mercedes-Benz to pause U.S. production of EV models
Mercedes-Benz is pausing U.S. production of its EV models and won’t give a timeline for when it will start again, according to multiple media reports.
The manufacturer started a “fire sale” of its electric models in the U.S. as it prepares for EV tax credits to end, according to Car and Driver. This includes 2025 and 2026 model years of the OEM’s EQ lineup.
“The EQE sedan and EQE SUV dropped from $76,050 and $79,050, respectively, to $66,100 apiece,” Car and Driver reports. “The EQS sedan price drop was the least drastic of the bunch, moving from $105,550 in 2025 to $101,140 in 2026. On the other end of the spectrum, the EQS SUV plummeted from $106,400 to $91,100.”
Mercedes isn’t alone in attempting to persuade buyers ahead of the EV tax credit ending Sept. 30, according to a Reuters article.
Tesla has been advertising the end of the $7,500 federal tax credit on its homepage, while Ford has extended a deal for free home chargers and installation through the end of September.
“This is certainly a great time to be considering an EV,” Rivian Finance Chief Claire McDonough told Reuters.
She said Rivian could introduce its own incentives, including financing deals following the end of the tax credits.
A U.S. Mercedes spokesperson confirmed with Motor1 that EQE and EQS production will come to a halt on Sept. 1.
“As a company with global activities and more than 30 plants worldwide, including in Alabama and South Carolina, Mercedes-Benz maintains a local-for-local strategy,” a Mercedes spokesperson told Motor1. “In doing so, we continuously optimize our production network and use its high flexibility to react quickly to market conditions. Please understand we are unable to share a timeline for when production will resume for competitive reasons. We will share more information when available.”
Mercedes confirmed with Car and Driver that it will continue to assemble all of its models for the global market.
It also told Car and Driver that its upcoming LCA EV model is on schedule to arrive at U.S. dealerships later this year, and a GLC EV model will be unveiled at Munich’s IAA motor show in September.
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