Mercedes EQS SUV Production Will Be Moved to Germany to Make Room for the EQC SUV

According to Automotive News Europe, the German automaker wants to make room at MBUSI for the second coming of the EQC. The first prototype was captured by the carparazzi in August 2023, looking extremely similar to the combustion-engined GLC, which is also made at the German plant.

Alternatively called GLC EV by people who aren't up to date with Merc's naming convention, the EQC is expected to start production sometime in the first quarter of 2026. As opposed to the first generation, which is referred to as N293, the all-new model is underpinned by a dedicated EV platform.

MB.EA is what it's called, an electric vehicle platform that covers mid-size automobiles to land yachts. The EQS SUV, as well as the EQS Sedan, are based on what Mercedes calls the EVA2. While on the subject of EV-specific platforms, the MMA will underpin compacts, while the AMG.EA is – obviously enough – reserved for high-performance vehicles developed by Affalterbach's finest.

The question is, why move the EQS SUV to Germany? According to the cited publication, the EQC is expected to sell much better than its three-row cousin. We also have to remember that EVs manufactured in the United States qualify for a tax credit as high as $7,500. At least 40 percent of critical minerals going into the battery have to be extracted/processed/recycled in the US or any other country that has a free trade agreement with the US to qualify for half of the $7,500 tax credit.

The other half also concerns the high-voltage battery. More specifically, at least 50 percent of battery components have to be manufactured/assembled in the United States of America or any other country that has a free trade agreement with the US of A. Electric sport utility vehicles are eligible for the $7,500 tax credit as long as the conditions above are met and if the SUV you fancy retails at less than $80,000.

There's no denying the second-generation EQC will cost less than $80,000 in the United States, hence Merc's decision to manufacture this fellow in Vance, Alabama. Although it's a more premium-oriented SUV than the Tesla Model Y, the EQC is certain to steal a few customers away from Tesla.

If you're curious why the first-gen EQC isn’t available in the United States of America, let's say that it kind of sucks. Revealed in September 2018 for the 2019 model year, the EQC was delisted from the German automaker's German website earlier this year due to poor demand. Still listed in the UK and China, the EQC is advertised with up to 254 miles (409 kilometers) of WLTP combined driving range.

254 is four miles down on the Model Y Rear-Wheel Drive, which is a steal compared to the EQC in terms of pricing. Higher up the spectrum, the Model Y Long Range Dual Motor offers up to 330 miles (531 kilometers) in the EPA's combined test cycle.