September 29, 2023

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Mercedes-Benz’s message for Tesla: ‘We want to be most desirable electric vehicle luxury brand’

German automaker Mercedes-Benz has noticed its share of the U.S. luxurious market slip as consumers traded in their V8 sedans and sport utility motor vehicles for Teslas. Now, the corporation is following in Tesla’s footsteps by building out its very own charging network, accelerating its electrified fleet and adding Amount 3 autonomous driving technology to its vehicles.

Mercedes’ goal is simple: Grow to be the “most attractive electric powered car luxurious manufacturer,” in accordance to Dimitris Psillakis, president and CEO of Mercedes-Benz North The usa.

Psillakis is serving to oversee the firm’s intense force toward EVs. The initially Mercedes EV, the futuristic EQS sedan, debuted in October of 2021. Four a lot more products, such as 3 electrical SUVs, promptly adopted. The EQS SUV and EQE SUV are developed at the firm’s Tuscaloosa, Alabama, plant. Mercedes’ brand name-new manufacturing unit in Bibb County supplies the lithium-ion batteries. Mercedes aims to go fully electric by 2030.

“To be the most attractive electrical vehicle luxury brand name, we have to strike a balance in between good merchandise and good style but also supportive service,” Psillakis informed ABC Information. “We really don’t see Tesla as a luxurious competitor … we see Tesla as a disruptor in the automotive sector, particularly when it comes to electric automobiles.”

The EQE SUV is generated in the Mercedes-Benz plant in Tuscaloosa, Ala. The firm’s battery manufacturing facility in nearby Bibb County supplies the SUV’s battery.


Mercedes’ system seems to be doing work. It offered 7,341 EVs in the very first quarter of 2023, an maximize of 251% versus the prior yr. Electric vehicles now account for 12% of the company’s profits in the U.S., the enterprise mentioned.

“Luxury purchasers are a lot more intrigued in EVs. They have bigger disposable earnings and are tech orientated,” Jessica Caldwell, government director of insights at Edmunds, informed ABC Information. “Tesla redefined what it usually means to be luxurious … but its market place share is now decreasing. Tesla peaked in 2019 when it controlled 80% of the market place.”

EVs now make up 6% of the U.S. automotive market place. Range panic and community charging availability are nevertheless best motives motorists are not switching to electrics, Caldwell said.

“Charging is nevertheless a significant roadblock for shoppers,” she said. “Mercedes’ charging stations are a reassurance to customers and a superior, however pricey, internet marketing technique.”

The company’s charging community, which launches initially in the U.S. and Canada and will be open to non-Mercedes designs, could resolve the country’s EV charging predicament.

“The logic at the rear of it is greater assistance, usefulness and taking away some concerns shoppers have nowadays on electrical vehicles,” Psillakis stated. “We treatment about the solution … it can be our responsibility to give the very best benefit to our clients.”

Tony Quiroga, editor-in-main of Automobile and Driver, reported Tesla’s really reliable supercharger community and prolonged-vary designs earned it a devoted enthusiast foundation. Quality brands like Mercedes are nonetheless battling to overtake the ubiquitous Tesla Product 3 and Model Y, he argued, while Mercedes may perhaps be closing the gap. Tesla’s aging fleet could also encourage individuals to appear in other places, he argued.

“Mercedes would not want to consider a backseat to Tesla,” he instructed ABC Information. “A charging network can be a major acquire for Mercedes.”

PHOTO: Mercedes-Benz's battery plant in Bibb County, Ala., provides high-performance lithium-ion batteries for the company's electric SUVs.

Mercedes-Benz’s battery plant in Bibb County, Ala., supplies substantial-performance lithium-ion batteries for the company’s electrical SUVs.


Quiroga pointed out that two Mercedes EVs — the EQ S450+ and EQ S580 — beat their EPA assortment estimates when Car and Driver workers carried out their comprehensive 75 mph tests on the cars.

“It can be incredibly rare when a automobile beats its EPA figures,” he mentioned.

And Mercedes’ EV momentum will give it an edge above the competitiveness, in accordance to Robby Degraff, an analyst at AutoPacific.

“They’ve seriously hit all the ideal segments so considerably, from the larger sized EQS SUV to the EQE sedan,” he told ABC Information. “If a loyal S-Class owner would like to go all-in on electrification, there ought to unquestionably be a comparable EV, like the EQS sedan. Which is an tactic and approach I consider Mercedes-Benz has truly nailed down.”

PHOTO: The EQS, the all-electric luxury sedan from Mercedes, launched in the fall of 2021.

The EQS, the all-electric powered luxurious sedan from Mercedes, launched in the tumble of 2021.


Mercedes a short while ago unveiled the Mercedes-Maybach EQS 680 SUV, the initial EV from the uber unique marque. The entire-measurement SUV makes use of technological know-how from the EQS SUV and is fitted with sustainably processed leather. Quite a few of the vehicle’s areas and factors are produced from resource-saving products, like secondary steel and recycled aluminum.

PHOTO: The Mercedes-Maybach EQS 680 SUV is the first electric vehicle from the Maybach brand.

The Mercedes-Maybach EQS 680 SUV is the initial electric powered car from the Maybach brand name.


EVs, however, are expensive and Psillakis claimed Mercedes is not immune to growing fascination premiums and financial uncertainty.

“Clearly it is impacting us, but we have a extensive vary of items in phrases of fashion charges,” he mentioned. “There is substantial desire for the new GLC. This car is not influenced at the second by any high desire rates or inflation.”

EVs are one particular component of Mercedes’ lengthy activity the organization scored a “monumental achievement” when Nevada regulators accredited its autonomous driving for public roadways before this yr. “Travel Pilot” will be integrated for model calendar year 2024 S-Course and EQS versions and is the only SEA Level 3 automatic driving process authorized by lawmakers, according to Mercedes. Psillakis explained California may be the subsequent state to approve the process, which operates at speeds up to 40 mph and is a lot more technologically state-of-the-art than Tesla’s Autopilot function.

“We have to make confident the expectation to prospects is the correct a single and make absolutely sure the method is delivering,” Psillakis reported.

PHOTO: Mercedes-Benz's Drive Pilot is the first SAE Level 3 automated driving system authorized for use on U.S. public freeways.

Mercedes-Benz’s Travel Pilot is the 1st SAE Degree 3 automated driving program authorized for use on U.S. general public freeways.


The interest on EVs has not stopped Mercedes from perfecting its fuel-driven SUVs and higher-general performance AMG versions. Very last month Mercedes exposed an current E-Course midsize sedan and released the plug-in hybrid GLE 450e 4MATIC SUV. A new 2024 GLS product range will get there in U.S. dealerships later on this yr.

PHOTO: The all-new GLE 450e 4MATIC plug-in hybrid makes 381 horsepower and 479 lb-ft of torque.

The all-new GLE 450e 4MATIC plug-in hybrid will make 381 horsepower and 479 lb-ft of torque.


“Mercedes is working two companies at the similar time,” said Caldwell. “Mercedes has an expansive EV lineup but the interior combustion autos are paying the payments. It is really high priced to run these two businesses in parallel.”

PHOTO: Mercedes-Benz recently updated the design, tech and equipment in its GLS models. The Mercedes-AMG GLS 63 is shown here.

Mercedes-Benz not too long ago updated the style, tech and products in its GLS designs. The Mercedes-AMG GLS 63 is proven here.


Degraff explained Mercedes’ interior combustion automobiles are however really fascinating and sought following by enthusiasts.

“Mercedes-Benz has been able to crank out critically eye-watering overall performance just by tapping into moderate hybridization and plug-in hybrids,” he mentioned.

Psillakis dismissed problems that the firm’s fabled AMG division would get rid of its cachet in an EV environment.

“EQS is electrical and it is an AMG,” he explained. “Yes, I do pass up the seems of a V8 engine. Do I miss out on the exciting? The torque? The effectiveness? No. AMG is not only seems and horsepower. It is also exclusivity, layout and performance, which you can get in electric cars as well.”