Most automakers are heading toward an electrified future full-tilt, but some are finding that the path forward will be a little bumpier than expected. Mercedes-Benz is well on its way to converting its gas lineup to electric, but the company’s franchise dealers are finding it hard to move electric inventory.
It took dealers 82 days to sell Mercedes EVs on average in September, much longer than the luxury average of 57 days and rival BMW’s average of just 38 days. The automaker’s electric lineup in the U.S. currently includes the EQS and EQS SUV, the EQE and EQE SUV, the EQB, and the high-end EQS SUV Maybach.
With pricing that starts at around $53,000, Mercedes’ EQ line could be suffering from buyer sticker shock, and dealers want discounts to help. One store told Automotive News that Mercedes’ unwillingness to offer incentives was a significant driver of the drop in demand and cited EVs’ prices as a problem, saying, “The EVs are coming whether or not you asked for them or earned them. There is too much of a price premium – especially at the top end of the EQ lineup – and almost no lease support.”
Some at Mercedes feel the products are the problem, with one saying that the brand’s cars “need to be ‘want’ cars,” like the S-Class or AMG GT Coupe. They also noted that the EQS is not an aspirational car like its gas-powered counterpart, which is a problem for a vehicle with a six-figure price tag.
Price might not be as large a sticking point for Mercedes buyers as it is for customers of mainstream brands, but everyone is thinking about money right now. Interest rates are high, and everything else in buyers’ lives is more expensive, so the shift could push people to examine the price tags more closely. It’s also true that the EV market has grown out of the early adopter stage and that buyers are far less excited about being guinea pigs for new tech, so there’s little tolerance for rough-around-the-edges vehicles hitting the market.
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