Luxury automaker Mercedes-Benz is set to discontinue the production of its EQS SUV in the United States, opting for a new extended-range electric GLC as part of its evolving electric vehicle (EV) lineup. Sources within the supply chain, as reported by Automotive News, indicate that the production of the EQS SUV will be relocated to the Bremen plant in the latter half of this decade.
Currently manufactured at the Tuscaloosa plant in Alabama, the EQS SUV marked Mercedes’ foray into all-electric vehicles in the US, commencing production in August of the previous year. The decision to shift production is primarily geared towards making way for the anticipated GLC EV, described by insiders as a “cash cow.” AutoForecast Solutions projects the commencement of GLC EV production in the first quarter of 2026, with an estimated volume surpassing 50,000 units in its inaugural year—more than double the current EQS SUV’s output.
The EQS SUV has been a cornerstone of Mercedes’ US sales, with 7,086 units sold through September. However, a 48% decline in sales during the third quarter, compared to the previous year, has influenced the company’s strategic shift.
The forthcoming GLC EV is positioned as the successor to the EQC, originally slated for a 2020 US launch but postponed due to range limitations. The new electric SUV is expected to boast around 300 miles of range and undergo a redesign, featuring a distinctive “rounded front and rear,” departing from the boxy styling of its gas-powered counterpart.
Recent sightings of the GLC EV during testing, as captured by Auto Express, reveal a sleek crossover SUV characterized by a short bonnet and a more compact stance. Manufacturing the new model in the US will enable Mercedes to qualify for IRA tax credits, a benefit amplified by the availability of locally sourced batteries from the company’s Bibb County factory.
Mercedes-Benz is rapidly embracing electric mobility in the US, with electric vehicles accounting for nearly 15% of its third-quarter sales. During a dealer meeting in May, the automaker’s global marketing and sales chief expressed expectations that EVs will represent 40% of new car sales in the US by 2026, with a projected increase to around 70% by 2030.
