Mercedes Halted US Orders for Electric Vehicles - Here's the Reason
Mercedes-Benz Temporarily Halts U.S. Orders for Electric Vehicles
Mercedes-Benz has announced a temporary halt on orders for its electric vehicles (EVs) in the U.S., citing current market conditions as the primary reason. The pause applies to all variants of the EQS sedan, EQS SUV, EQE sedan, and EQE SUV, with production for the U.S. market set to cease starting September 1, 2025.
The decision comes amidst slower-than-expected EV demand, a rollback of federal tax incentives on EVs, and rising inventory that dealers need to manage. Mercedes-Benz is also planning price cuts on several EQ models to stimulate sales.
The U.S. President, Donald Trump, signed a new budget bill this month, eliminating the $7,500 tax credit for new electric vehicles. This move could make EVs more expensive, potentially affecting companies like Tesla, Cadillac, and Chevrolet. However, Mercedes-Benz remains optimistic about the future of EVs in the U.S., believing that interest will recover over time.
The company's spokesperson could not provide a specific date for when U.S. order banks for EQ models would reopen due to competitive reasons. Vehicles scheduled for production before September 1st will still be delivered.
Mercedes-Benz, a globally operating company with over 30 plants worldwide, including those in Alabama and South Carolina, began production of the EQS SUV and EQE SUV at its Alabama plant in 2022, and the Mercedes-Maybach EQS SUV was added in 2023. The sale of the Mercedes-Maybach EQS SUV was also added to production at the Alabama plant in 2023.
The medium- to long-term acceptance rate of BEVs in the U.S. is expected to gradually increase, although at a slower pace due to new regulatory paths. Despite the current challenges, Mercedes-Benz continues to produce all its models intended for export to global markets and adjusts to local market demand, demonstrating its high flexibility to quickly react to market conditions.
[1] Mercedes-Benz halts U.S. orders for electric vehicles
[2] Mercedes-Benz to cut prices on several EQ models to stimulate sales
[3] Federal tax incentives on electric vehicles rollback
[4] U.S. President signs budget bill eliminating electric vehicle tax credit
[5] Second-quarter results report shows decrease in battery-electric vehicle sales for Mercedes-Benz
[1] What about the technology sector in finance with the U.S. President's decision to eliminate the tax credit for electric vehicles? Could this potentially impact the sales of sports cars like Mercedes-Benz EVs?
[2] In an attempt to boost sales, might Mercedes-Benz's next step be to embrace the confluence of technology and finance by exploring innovative financial solutions or partnerships in the sports sector?
