Mercedes-Benz Pauses Production of EQ Electric Vehicles in the US
Mercedes-Benz USA has announced that production of its first-generation electric vehicles (EVs) for the U.S. market will stop on September 1st. This includes the EQE and EQS sedans and SUVs, and all of their different versions. The company plans to continue producing future generations of EVs.
Reasons for the Production Pause
The pause in production is happening because the EQ cars didn’t become popular enough with customers. Some people also criticized their designs. This decision also coincides with the end of EV tax credits in the United States.
Current Status of Production
A Mercedes-Benz USA spokesperson told InsideEVs that all versions of the EQE and EQS sedans and SUVs in the U.S. and for the U.S. are temporarily being stopped. Dealerships have also closed order books for these vehicles.
The spokesperson added that vehicles already scheduled for production before September 1st will continue to be made. This change only applies to orders for these specific models in the U.S. This news first appeared on CarBuzz.
The spokesperson did not say for how long this production pause will last. The September 1st date is linked to the expiration of EV tax credits in America, which will end on September 30th after President Donald Trump’s budget bill was passed.
Production Locations
The Mercedes-Benz EQS and EQE SUVs are made at the Mercedes-Benz plant in Tuscaloosa, Alabama. Their sedan versions are built in Germany and shipped to the U.S. None of these models were eligible for the EV tax credit unless they were leased.
Company Strategy
A spokesperson said that Mercedes-Benz maintains a “local-for-local” strategy, meaning they adapt their production based on local market conditions. This allows them to quickly respond to changes in demand.
Market Outlook
While Mercedes didn’t detail the specific market conditions, many experts expect a decrease in EV sales after the tax credits expire. The EQ models had been selling slowly since their introduction.
Criticisms of the EQ Models
Reviewers often said the EQ cars didn’t have the same high-quality interior as Mercedes’ gasoline-powered E-Class and S-Class. However, they did offer good range and efficiency. Their designs were often criticized as being too futuristic and not having the traditional elegance buyers were looking for.
I’m Rohan Mehta, the voice behind KhelRe—a trusted and steadily growing blog dedicated to electric vehicles (EVs) in India. With over five years of experience as a tech and automotive blogger, I turned my frustrations with owning an EV into a mission: to help others make more intelligent choices in this fast-evolving world of electric mobility.
I’ve been an early adopter of EV technology—I repurchased my first electric scooter in 2019. That experience opened my eyes to both the promises and the pitfalls of this new mode of transport. From slow charging times and range anxiety to misleading specs and hidden costs, I’ve faced it all. But instead of walking away, I decided to write about it.
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