Mercedes-Benz Hits the Brakes on EQ Electric Deliveries to U.S.

In a strategic pause, Mercedes-Benz announced it would temporarily halt deliveries of its EQ electric vehicle lineup to the United States, citing a decline in demand and an increase in dealer inventories. This move comes in response to the recent reduction of tax credits as part of President Donald Trump's spending bill enacted earlier this month, which analysts say will potentially hinder U.S. efforts toward vehicle electrification this year.

The company, which builds its cars, including battery-electric vehicles (BEVs), at its Tuscaloosa, Alabama plant, made this decision to realign production with the current market needs. A spokesperson confirmed the temporary hold, emphasizing the company's adaptability to changing market conditions.

Despite the current slowdown, Mercedes-Benz CEO Ola Kaellenius expressed confidence in the future growth of the EV market in the United States. Presenting the company's second-quarter results, Kaellenius asserted that while the trajectory has slowed, the demand for BEVs is expected to increase over the medium to long term. The company has ambitious plans for its vehicle lineup, targeting the release of 19 new combustion engine models along with 17 new battery-electric vehicles by 2027.

(With inputs from agencies.)