Mercedes Halted U.S. Orders for Electric Vehicles - The Reason Behind It
In a recent development, luxury automaker Mercedes-Benz has announced a temporary halt in orders for its electric vehicles (EVs) in the United States. This decision comes as the company grapples with managing production and delivery backlogs due to high demand.
The Mercedes-Benz Group, in a bid to ensure a smoother delivery process and better customer experience, has decided to control the order intake during this period. This move follows the continued rise of battery electric vehicles (BEVs) in the U.S. market, a trend that the Group's representative expects to continue in the medium to long term.
However, the representative also expressed that they do not foresee a drop in demand for BEVs in the U.S. market, and they believe that the medium- to long-term acceptance rate of BEVs will gradually increase, albeit possibly at a slower pace.
The temporary halt affects all variants of the EQS sedan, EQS SUV, EQE sedan, and EQE SUV. Vehicles scheduled for production before September 1 will still be delivered as planned. The spokesperson could not disclose when U.S. order banks for EQ models would reopen due to competitive reasons.
The decision to pause orders in the U.S. might have been influenced by the elimination of the $7,500 tax credit for new electric vehicles in the U.S., a move that was part of the new budget bill signed by President Donald Trump. This tax credit elimination may have affected not only Mercedes-Benz but also companies like Tesla, Cadillac, and Chevrolet.
Despite these challenges, Mercedes-Benz remains optimistic about the future. The company has continued to produce all models intended for export to global markets and has started producing the EQS SUV and EQE SUV at its Alabama plant in 2022, with the Mercedes-Maybach EQS SUV added in 2023.
In the broader context, electric vehicle sales in North America have increased by only 5% in the first four months of 2024, compared to higher rates in Europe and China. On a global scale, Mercedes-Benz's BEV sales decreased by nearly 25% in the second quarter compared to the same period last year, from 45,843 units to 35,027 units.
Looking forward, the order banks for Mercedes-Benz electric vehicles in the U.S. are expected to reopen in the spring of 2024. The company remains confident that U.S. interest in electric vehicles will recover over time, reflecting its continued optimism about the future of electric mobility.
- What is the reason for Mercedes-Benz temporarily halting orders for its electric vehicles in the U.S.? It's due to the production and delivery backlogs resulting from high demand.
- The Mercedes-Benz Group's move to control order intake is aimed at ensuring a smoother delivery process and better customer experience, as the use of battery electric vehicles (BEVs) rises in the U.S. market.
- While the Mercedes-Benz representative does not foresee a drop in demand for BEVs in the U.S. market, they believe that the medium- to long-term acceptance rate of BEVs will gradually increase, although possibly at a slower pace.
- The temporary halt affects all variants of the EQS sedan, EQS SUV, EQE sedan, and EQE SUV, with no specific date for when U.S. order banks for EQ models will reopen due to competitive reasons.
