The automaker cited high dealer inventory as a main driver for the decision to pause imports
- Mercedes paused U.S. EV shipments due to weak demand and high inventory.
- It still builds EVs in Alabama but sees slow U.S. EV growth ahead.
- Tariffs and fading incentives are forcing brands to rethink EV plans.
A market that ‘creeps upwards’ isn’t exactly what most brands hope for. Nevertheless, it’s what Mercedes-Benz expects of the US market for electric vehicles. That’s just one reason that it’s paused shipments of its EVs to the USA for the time being.
Notably, Mercedes makes some EVs in the USA already. It has a production facility in Alabama. On top of that, the automaker says that dealer inventory is high right now and demand is weak. All of that combined leads to the decision that’s made today. Essentially, if you want a new Mercedes EV, you’ll have to buy one that’s already in stock.
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Speaking to Reuters, a spokesperson said that “Mercedes-Benz is temporarily putting on hold order banks for EQ models in the U.S. to align with current market demand.” That quote comes after CEO Ola Kaellenius mentioned that the brand as a whole expected EV sales to slow down during a Q2 presentation.
“We don’t believe that the BEV demand in the United States goes to zero: we still think that the medium to long-term adoption rate of BEVs in the U.S. will creep upwards,” he said. Of course, this is all happening during a time when industry sands are shifting, most notably in America. Tariff pressures have combined with the end of EV tax incentives to drive prices up for consumers.
Automakers all over the globe are recognizing the need to adjust their strategies. Jaguar and Land Rover have delayed their EV projects. Porsche has done the same with its electric Boxster. It’s even working on a next-gen gas-powered Macan because of market pressures.
Companies like General Motors and Stellantis have already lost billions due to tariffs despite building plenty of cars in the USA. Other automakers like Porsche and Kia are raising prices. Nations like Canada are considering internal regulation changes to sidestep tariffs, too. All of that said, this likely won’t be the last reaction we see from a company like Mercedes regarding EVs and industry pressures.
