Mercedes-Benz temporarily stopped the deliveries of its EQ electric models to the United States as inventories of high dealerships and reduces car manufacturers of consumers’ appetite pressure already confronted with opposite policy winds.
The decision follows a significant change in the landscape of American electric vehicles (EV) after the recent expenditure bill of President Donald Trump has accelerated the elimination of tax credits for electric vehicle buyers.
The German automaker adjusts its supply strategy in response to an US US market which could now underform previous growth expectations.
Trump’s bill accelerates the end of EV incentives
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The slowdown comes in the heels of a spending bill signed by President Trump earlier this month, which presented the expiration calendar of EV tax credits.
This change has eroded a key financial incentive for American buyers, hitting car manufacturers like Mercedes-Benz which depend on these subsidies to make premium electric vehicles more attractive.
Analysts have since revised their projections for the adoption of the US EV, warning that 2025 may not be prior to the electrification objectives initially planned for the year.
Mercedes reshapes the American strategy in the middle of the GLUT EV
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Mercedes confirmed on Wednesday that she “would take a break of control banks” for its EQ electric range in the United States.
The EQ range includes electric battery vehicles (BEV) which are assembled at the Tuscaloosa factory of the car manufacturer in Alabama and distributed on its network of American dealerships.
The automaker has cited the “current market demand” and dealership stock levels as a basis for its decision.
Despite the temporary judgment, the group is not completely withdrawn from the US EV market.
The CEO, Ola Kaellenius, during the presentation of the company’s second quarter profits, said that he still saw room for long -term growth in the adoption of the BEV across the country.
Although the current rate is slower than expected, it has projected a gradual increase in consumer interest in the medium and long term.
The production development goes to combustion engines
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In a broader change of strategy disclosed earlier this year, Mercedes-Benz has announced that it would favor combustion engine vehicles on electric vehicles in its next range of products.
The company has revealed its intention to launch 19 new models of petrol and diesel alongside 17 new BEVs by the end of 2027.
The rebalancing follows a sharp drop in electric battery sales last year, which dropped by 25% – to rethink the company’s electrification sheet.
This last break in equal deliveries suggests that Mercedes recalibrated not only the development of products, but also logistics and inventory management to cope with an evolving market.
While consumer incentives are decreasing and dealership lands are filling up, car manufacturers are increasingly difficult to maintain the sales dynamics of electric vehicles that defined the previous years of growth -oriented growth.
Short -term reset, gradual recovery expected
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Mercedes-Benz’s move can serve as an early signal for other manufacturers, especially those that operate in the EV Premium space.
For the moment, the break is temporary and the company maintains that it remains determined to develop its American American footprint, although more cautiously.
The impact of policy changes, in particular around subsidies and tax credits, is probably a decisive factor in the formation of this expansion.
