According to a recent source, Mercedes-Benz intends to discontinue manufacturing the EQS electric luxury SUV in the US. Instead, the manufacturer intends to relocate the production of its flagship electric SUV to Germany. Produced in the automaker’s Alabama manufacturing site, the Mercedes-Benz EQS is the electric version of the GLS. The story goes on to say that Mercedes intends to build the new-generation EQC at the Alabama plant, which will make greater use of the space and be made in larger volumes.
With a 305,000-car annual production capacity at the US factory, the luxurious Mercedes-Benz EQS only makes up approximately 7% of the automaker’s total annual production capacity. Mercedes-Benz only sold 7,086 EQS cars in the US between January and September, which is far less than the facility can produce. In order to make room for a new vehicle, the German automaker intends to move production to its Bremen factory in Germany in the second part of the decade.
What With The US Plant
In the meantime, the Alabama facility is anticipated to start producing the new Mercedes-Benz EQC in the first quarter of 2026. In addition to being the automaker’s best-selling SUV in India, the GLC is a desirable commodity worldwide. Over time, it is anticipated that the new EQC will surpass those figures, and predictions indicate the manufacturer may easily surpass 50,000 units produced in the first year.
This will optimize capacity utilization in the US factory, and the US Inflation Reduction Act will allow the EQC to get tax credits for local manufacture. When opposed to the departing EQC, which isn’t available for purchase in the US because of its short range, the new GLC-based EV is anticipated to provide a significantly greater range. Presently undergoing testing, the next-generation GLC is anticipated to launch globally in 2025 or early 2026.
With just one charge, the improved range of the Mercedes-Benz EQC 2nd generation should come in at about 500 miles. Additionally, compared to the internal combustion version, it will feature a different and more rounded design. The Alabama facility is anticipated to ship the new generation EQC to India, where it may be locally assembled to maintain competitive prices. Since the EQS is already assembled in India by Mercedes-Benz India, the vehicle enjoys a notable cost advantage.
At the automaker’s Bremen plant, the Mercedes-Benz EQS will be housed among the C-Class, E-Class, GLC, and EQE models. Established in 1978, the plant has the capacity to produce up to 265,000 vehicles annually, with the addition of around 20,000 units to the assembly line by the new EQS.
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