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Mercedes Suspends EQ Electric Vehicle Production for U.S.

| Photo: D.Boshouwers
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Derek Boshouwers
The German automaker’s EQE and EQS will continue to be available in Canada, however.

Mercedes-Benz is stopping taking orders for its all-electric EQE and EQS models in the U.S., and plans to suspend domestic EV production meant for the U.S. market as of September. 

Note that availability for Canadian consumers will continue unaffected. Even as it cuts production of the EVs at its plant in Vance, Alabama for the domestic U.S. market, Mercedes will still produce them there for other markets - including Canada.

The decision to pull the EVs off the U.S. market comes not long after the luxury brand announced steep price cuts in the U.S. on its EQE and EQS models. According to Automotive News, sales of the two EVs dropped by 35 and 32 percent respectively in 2025, and dealers have had problems reducing inventories. The company evidently concluded that with EV sales growth slowing and the U.S. administration pulling the plug on EV tax incentives, there was not enough of a market for the models to keep them available, at least for now.

As for why Mercedes is continuing to produce the EQE and EQs for other markets, that is because vehicles produced at the Alabama plant benefit from export tariff exemptions as part of U.S.-EU trade deals. Currently, about 60 percent of the EVs produced in Alabama are destined for overseas markets.

Derek Boshouwers
Derek Boshouwers
Automotive expert
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