Mercedes-Benz has recommenced the production of its EQ-branded electric vehicles for the American market, marking an end to a suspension that began last September. This pause was primarily influenced by the cessation of federal EV tax credits. The revived lineup includes the EQE and EQS sedans, manufactured in Germany, alongside the EQE and EQS SUVs, which are assembled in Alabama. In a strategic effort to enhance their appeal within an increasingly competitive electric vehicle landscape, Mercedes has implemented substantial price reductions for the 2026 models, with some cuts reaching up to $15,000. Additionally, certain model configurations have been streamlined. This reintroduction is timely, as it coincides with the impending launch of new electric models, such as the CLA-class sedan and GLC-class EV, signaling Mercedes-Benz's renewed commitment to its electric vehicle portfolio.
Mercedes-Benz Rekindles US EV Production with Strategic Price Adjustments for 2026 Models
Stuttgart, Germany & Vance, Alabama - Mercedes-Benz has officially announced the restart of production for its range of EQ-branded electric vehicles destined for the United States market. This significant development comes after a temporary halt in September of the previous year, which was a direct response to shifts in federal EV tax credit policies that impacted market dynamics. The luxury automotive giant is resuming operations at its facilities in both Germany and Alabama, bringing back popular models including the EQE sedan, EQS sedan, EQE SUV, and EQS SUV.
According to reports, including initial insights from The Drive, the decision to resume production reflects Mercedes-Benz's adaptive strategy to navigate a more challenging electric vehicle sales environment. The landscape has evolved considerably since the previous administration's policy changes led to a noticeable decline in EV sales during the final quarter of 2025.
In a bold move to stimulate demand and enhance the competitiveness of its EQ series, Mercedes-Benz has introduced substantial price adjustments for the 2026 model year. For instance, the EQE sedan will now commence at an appealing $66,100, representing a nearly $10,000 decrease compared to its 2025 pricing. Concurrently, the 402-horsepower EQE500 variant will no longer be available. Similarly, the EQE SUV sees an identical starting price, positioning it approximately $13,000 lower than its 2025 predecessor, with its EQE500 model also being discontinued. The flagship EQS SUV will start at $91,100, a significant reduction of about $15,000 from its 2025 price, and the rear-wheel-drive EQS450+ has been removed from the lineup. The EQS sedan will also benefit from a discount of around $5,000.
This re-launch is further complemented by Mercedes-Benz's plans to introduce two new electric models in 2026: the electric CLA-class sedan and the GLC-class EV. Notably, these forthcoming models will diverge from the EQ naming convention, adopting more familiar nomenclature, thereby signaling a potential strategic evolution in the brand's electric vehicle branding. While the CLA EV will be released alongside a hybrid version, the GLC EV will carry the name of one of Mercedes's top-selling compact SUVs, though they will not share a common platform.
The return of the EQ lineup, combined with aggressive pricing and the introduction of new models, underscores Mercedes-Benz's unwavering commitment to solidifying its presence in the burgeoning electric vehicle market, despite facing a more rigorous sales climate.
The resurgence of Mercedes-Benz's EQ electric vehicle line, accompanied by significant price adjustments, highlights the dynamic and competitive nature of the electric vehicle market. It underscores how swiftly manufacturers must adapt to economic shifts, consumer preferences, and policy changes to maintain relevance and drive adoption. This move not only offers consumers a more accessible entry point into luxury EVs but also demonstrates Mercedes-Benz's strategic agility in fostering its electric future.