German legacy automaker Mercedes-Benz will halt the production of the popular EQS electric SUV in its US factory to give way for a new longer-range GLC, Automotive News, citing supply chain sources.
Plan details
The report suggests that Mercedes will relocate the next-gen EQS SUV production to its existing Breman factory in Germany in the second half of the decade. However, the current generation will still complete production in the US before the planned reassignment.
This decision is crucial for the German automaker to make room for the production of the new GLC EV in its Tuscaloosa factory in Alabama, where the EQS SUV production kicked off last August.
According to AutoForecast Solutions, reported by Electrek, Mercedes aims to start the production of the “cash cow” EV in the first quarter of 2026.
What’s currently known about the new Mercedes GLC?
The research company projects the new GLC EV to reach an annual production capacity of 50,000 units in the first year, indicating a more than two-fold increase from the EQS’ current output.
The new model is also expected to replace the EQC e-crossover, boasting a driving range of around 300 miles and a unique design.
The dealers further noted that the new GLC e-crossover features a rounded front and rear, a deviation from its non-EV counterpart’s boxy appearance. Its hood sports two power domes, and its front features a light signature.
AutoForecast VP Sam Fiorani explained that Mercedes’ decision to assign the production of the GLC EV in the US is crucial for the model to gain access to federal tax credits of up to $7,500.
Targets
Mercedes aims to become an all-electric brand in markets “that allow it by early next decade.”
Moreover, Mercedes-Benz global sales and marketing chief Britta Seeger announced in mid-May that Mercedes aims to have EVs contribute at least 40% of new vehicle sales in the US by 2026. Retailers who attended the meeting noted that it will gradually increase to 70% by 2030.
As of September 2023, Mercedes EV sales only reached a 14.1% share in its overall volume in the US.
Mercedes’ strategic move will potentially enable future GLC EV customers to benefit from the federal tax credits of up to $7,500. Moreover, it will also boost the company’s profitability as it generates economies of scale, particularly for EV batteries.
