Mercedes-Benz pauses ‘EQ’ production

MERCEDES-BENZ has announced that it will “indefinitely pause” US production and sales of its fully electric EQE and EQS models effective 1 September.

The sales pause also applies to imported German-built EQE and EQS variants.

According to publication The Drive, the German manufacturer said its US plant “will continue to produce EQ variants for export to overseas markets … but has no current plans to revive (local) sales”.

Dealers were informed of the decision immediately, a Mercedes-Benz spokesperson confirmed.

Additionally, Inside EVs reports that the decision “affects three plants (with) SUV versions of the EQS and EQE built at the US plant in Tuscaloosa (and) sedan variants are produced in Germany and exported to the US. Production for all other markets continues as normal and no comparable measure is known for Europe”.

The outlet speculated the decision to close orders for the electric ranges in the US is linked to the end of the EV tax credit there at the end of September. Neither the EQE nor the EQS qualified for tax credits – unless the vehicles were leased.

Alluding to other concerns with the current EQ models the publication said they have struggled to sell in the US from the outset – whether due to their widely criticised design, interior quality below that of the E- and S-Class, range, or relatively long charging times compared to rivals.

And with the tax credit ending, experts expect a collapse in EV sales in the US from Q4 onwards – further worsening conditions for Mercedes’ already unpopular EQ models.

Also under the microscope is the “EQ” nomenclature itself that is being phased out as it may be too confusing for customers.

In relation to the EQ’s design The Drive said, “In the meantime, those of you here in the US can say so long to some of the company’s most forgettable exterior designs. Help us, Mercedes Modular Architecture; you’re our only hope!”.

US media consensus suggests that the EQ’s production and sales pause has no bearing on the company’s future electrification plan as the forthcoming all-electric CLA is still slated for North American introduction in 2026.

“The new all-electric CLA, arriving at US dealerships later in 2025, is the first vehicle built on our new Mercedes Modular Architecture (MMA),” reported The Drive.

“As announced at IAA Mobility 2023, Mercedes-Benz will also introduce two SUVs based on this new architecture.

“Furthermore, the all-new electric GLC will be unveiled at Munich’s IAA motor show on 7 September 2025.”