Mercedes-Benz to Discontinue EQE Models, Shifts EV Strategy Amid cost Pressures
Stuttgart, germany – September 3, 2024 - Mercedes-Benz is poised to overhaul its electric vehicle strategy, beginning with the discontinuation of the EQE sedan and SUV in 2026. The move signals a importent recalibration for the German automaker as it seeks to reconcile the financial realities of EV production with consumer demand and evolving market conditions.
The decision to sunset the EQE line comes as Mercedes-Benz confronts a widening gap between the profitability of its customary internal combustion engine vehicles and its burgeoning EV portfolio. According to Autocar, the company is responding to this challenge by streamlining its electric offerings and integrating EV technology into its existing, popular models. This pivot impacts not only vehicle design but also production locations,with some manufacturing shifting to lower-cost facilities.
A Mercedes-Benz spokesperson confirmed that development is underway on successors to the EQE, which will take the form of all-electric variants of the C-class and GLC. These models are expected to adopt a more conventional design language, moving away from the distinct styling of the current EQ sub-brand. The GLC EQ is anticipated to arrive later in 2024, while the C EQ is projected for a 2026 unveiling.
The strategic shift is further underscored by a move to relocate production of one Mercedes-Benz model to Kecskemét, Hungary, driven by a reported 70 percent cost reduction. Mercedes-Benz AG stated they are “continuously responding to changing market conditions,” as reported by Economx. This restructuring highlights the increasing pressure on automakers to optimize production costs in the face of rising EV investments and fluctuating sales.
