Mercedez Benz News Mercedes Announces Production of U.S. First All-Electric EQ SUV

[David]

Mercedes is proud to announce production of the exclusive EQS SUV built exclusively in the U.S. for global consumption at the Tuscaloosa plant, from Alabama to the world. This has been possible due to the Bibb County, Alabama Mercedes-Benz Battery Factory that will supply all EVs produced in the U.S. for both North America and Global consumption. Mercedes is proud to also state that both the battery production and auto production sites are Carbon Neutral site with comprehensive sustainability plans.

 Mercedes has stated that their global initiative is to produce eight all-electric vehicles at seven sites on three continents by the end of this year, 2022.

Since 1997, Tuscaloosa plant has been the focus on building large SUVs for Mercedes and now this will continue as they have integrated full-size EQS SUV into the production line as well. Tuscaloosa serves as the key production sit for Mercedes-EQ luxury electric SUVs starting with the EQS and by the end of the year the EQE SUV.

The Tuscaloosa plant uses state-of-the-art digital, sustainable, efficient and flexible production methods that are based on the blueprint created by the companies Factory 56 in Sindelfingen, Germany.

Michael Goebel, President and CEO of Mercedes-Benz US International had the following to say:  “We have a highly skilled and motivated team that has absolutely delivered in the successful product launch of the new EQS SUV. Our Team Members in Tuscaloosa have shown a lot of flexibility, energy and commitment in helping us to achieve milestone after milestone since our first Mercedes-Benz rolled off the production line more than 25 years ago. The employees here at the site can be proud that the first all-electric SUV from Mercedes-Benz and its battery are being built in Alabama.”

Production of battery packs began in March of 2022 at the Bibb County production facility which makes it part of the Mercedes Global battery production network which comprises factories on three different continents. The Bibb County production line is a 985-foot-long line with 70 workstations building the modular battery packs for the EQ family of autos.

The EQS SUV has responsive 4MATIC all-wheel drive with their intelligent OFFROAD driving mode allowing this SUV to tackle light terrain with ease per the press release.

Mercedes much like other manufactures is starting from the top down in their product portfolio producing their most luxurious models first.

Mercedes will keep the interior that was released on the EQS sedan in the SUV with the same interior options.

 

Start of Production for the new EQS SUV at Mercedes-Benz in Alabama - Mercedes-Benz Group Media

Erste Einblicke ins Interieur des neuen EQE SUV - Mercedes-Benz Group Media

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[David]

I have been searching but have not found anything yet on Mercedes global or U.S. based web sites about expansion or additional battery production lines. I cannot think that a 985-foot line will be big enough to support building 7 different EVs here in the US. 

I think Mercedes is being way too conservative in their building of EVs.

Yes, starting at the top of the line, most expensive will tamper purchases, but the way certain groups of humans like Asians buy anything that has a 3-pointed star on it, they will be having more demand than production, I think.

Will be interesting to see how this plays out for them. GM, Ford, Rivian and Tesla all have up and running or in assembly battery plants that are far bigger than what Mercedes has built.

[smk4565]

Get them now before the $7500 tax credit goes away in January.

The Alabama battery plant really only needs to serve demand for EQE SUV and EQS SUV.  That's all they are making there although it would make sense to make their lower end cars there so consumers can get the tax credit on them, because the $80,000 price cap is going to disqualify EQS and maybe all EQE trims.  They actually need to build the A-C class vehicles in Alabama, build the EQB there for example, it starts at $56,000, get the tax credit to $48,500 and then all of a sudden that looks like a good deal.

[David]

22 hours ago, smk4565 said:

Get them now before the $7500 tax credit goes away in January.

The Alabama battery plant really only needs to serve demand for EQE SUV and EQS SUV.  That's all they are making there although it would make sense to make their lower end cars there so consumers can get the tax credit on them, because the $80,000 price cap is going to disqualify EQS and maybe all EQE trims.  They actually need to build the A-C class vehicles in Alabama, build the EQB there for example, it starts at $56,000, get the tax credit to $48,500 and then all of a sudden that looks like a good deal.

The EQB is not here and as such would not get the rebate and starting January 1st 2023, the new rebate plan is what has some companies pissed off as the rebate is good only on EVs built in the US withs EV cars below the $55K threshold and trucks, SUVs and Vans below $80K. This is what has Kia and Hyundai pissed as well as Toyota since they build their EVs in their own country and export them here to the U.S.

Going to be interesting to see how this rebate plays out with the various auto companies.

Those interested in the bill that was signed into law can get it all here, they have one of the better breakdowns of it.

Electric Vehicle Tax Credits: What You Need to Know (investopedia.com)

[smk4565]

46 minutes ago, David said:

The EQB is not here and as such would not get the rebate and starting January 1st 2023, the new rebate plan is what has some companies pissed off as the rebate is good only on EVs built in the US withs EV cars below the $55K threshold and trucks, SUVs and Vans below $80K. This is what has Kia and Hyundai pissed as well as Toyota since they build their EVs in their own country and export them here to the U.S.

Going to be interesting to see how this rebate plays out with the various auto companies.

Those interested in the bill that was signed into law can get it all here, they have one of the better breakdowns of it.

Electric Vehicle Tax Credits: What You Need to Know (investopedia.com)

Right but the $80k price cap doesn't start until January, so the EQS SUV qualifies right now, but I don't think they are even to dealers yet, so there is only going to be a 2-3 month window they get that tax break.  EQB isn't built in the USA.  I am saying Mercedes would be better off making EQB's in the USA to get the tax credit on them, and if there isn't enough capacity in Alabama to make GLE, GLS, EQE SUVs, EQS SUV, GLB, etc then move production of the EQS SUV to Germany since it is not credit eligible.  

Really this new law is industrial policy, which I happen to like.  It isn't so much about giving car buyers a tax rebate, it is about forcing the car companies to bring battery production to the USA and the free trade allies and out of China.  And all the car companies will come to the USA because you don't want to be Honda selling your electric CRV for $7500 more than Chevy's electric Equinox  because in the mass market segments you are dead in the water if you are priced 20% higher than a rival in the same segment.   

This is also a buffer to block the Chinese brands form coming, because they will start importing cheaper Chinese made EV's.