It appears that fully-electric Mercedes-Benz EQ models are going through a rocky period. According to a Reuters report, Mercedes-Benz has stopped production of its EQ models in the United States, and has plans to cut the sticker price of its EQ models sold stateside, with the German carmaker citing high inventory and weak demand.

The move will see Mercedes-Benz halting production of EQ models manufactured at its plant in Alabama and will focus on selling off its current inventory of EQ models in the US.

Mercedes-Benz CEO, Ola Källenius, spoke to reporters after presenting the company’s Q2 2025 results, stating that despite the weak demand, he expects interest in the US for his company’s EQ models to increase over time. 

“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 US will creep upwards,” Källenius added. In response to the current situation, Mercedes-Benz will reduce the sticker price of the base Mercedes-Benz EQE and EQS sedan and SUV models stateside by 4-16%, starting with the 2026 model year.

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Mercedes-Benz’s EQ problem isn’t just confined to the US, either, with reports suggesting that the G580 electric G-Class is also struggling to move off the lot.

According to a report by InsideEVs, out of the 9,700 combined sales of all Mercedes-Benz G-Class variants in Q1 2025 – which was an 18% increase compared to the same period last year – only 1,450 of those are the electric G580.

As a result, Mercedes-Benz is now reportedly working to introduce a hybrid variant of its upcoming “Baby G-Wagen,” which was originally intended to come only with an EV powertrain, according to German business newspaper, Handelsblatt.

This recent news comes after a broader strategic shift announced during the Mercedes-Benz 2024 financial results briefing in February of this year. At that time, the company revealed it would introduce more internal combustion engine (ICE) models into its line-up through 2027, with a future portfolio that will include 19 new ICE models alongside 17 new EV models.

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