Mercedes EQS Production Heading Home to Germany, New EQC to Take its Place in US Plant

News Highlights

• Mercedes-Benz intends to move EQS manufacturing to its facility in Germany.
• Instead, the business will manufacture the next-generation EQC in the US.
• By the end of 2025, the next generation EQC is anticipated to be unveiled.

According to a recent report, Mercedes-Benz intends to cease production of the EQS electric luxury SUV in the United States. Instead, the manufacturer intends to relocate the production of its flagship electric SUV to Germany. Produced at the automaker's Alabama manufacturing facility, the Mercedes-Benz EQS is the electric version of the GLS. The report goes on to say that Mercedes intends to build the new-generation EQC at the Alabama plant, which will make better use of the space and be built in larger volumes. 

At the US plant, where 305,000 vehicles can be produced annually, the luxurious Mercedes-Benz EQS only makes up approximately 7% of the automaker's total production capacity. Mercedes-Benz only sold 7,086 EQS units in the US between January and September, which is significantly less than the plant can produce. In order to make room for a new product, the German automaker intends to move production to its Bremen facility in Germany in the second half of the decade.

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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 hot commodity worldwide. Over time, it is anticipated that the new EQC will surpass those figures, and reports indicate the automaker may easily surpass 50,000 units produced in the first year. 

This will optimize capacity utilization at the US plant, and the US Inflation Reduction Act will allow the EQC to receive tax credits for local production. When compared 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 far 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 almost 500 km. Additionally, compared to the internal combustion version, it will have 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 model has a notable cost advantage. 

At the automaker's Bremen facility, the Mercedes-Benz EQS will be housed alongside 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 approximately 20,000 units to the assembly line by the new EQS.