
Mercedes-Benz's message for Tesla: 'We want to be most desirable ...
- by ABC News
- May 28, 2023
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May 28, 2023, 6:07 AM
1:31 German automaker Mercedes-Benz is transitioning to an all-electric fleet by 2030.
Mercedes-Benz
German automaker Mercedes-Benz has seen its share of the U.S. luxury market slip as customers traded in their V8 sedans and sport utility vehicles for Teslas. Now, the company is following in Tesla's footsteps by building out its own charging network, accelerating its electrified fleet and adding Level 3 autonomous driving technology to its vehicles.
Mercedes' goal is simple: Become the "most desirable electric vehicle luxury brand," according to Dimitris Psillakis, president and CEO of Mercedes-Benz North America.
Psillakis is helping oversee the company's aggressive push toward EVs. The first Mercedes EV, the futuristic EQS sedan, debuted in October of 2021. Four more models, including three electric SUVs, promptly followed. The EQS SUV and EQE SUV are built at the company's Tuscaloosa, Alabama, plant. Mercedes' brand-new factory in Bibb County supplies the lithium-ion batteries. Mercedes aims to go fully electric by 2030.
"To be the most desirable electric vehicle luxury brand, we have to strike a balance between good products and good design but also supportive service," Psillakis told ABC News. "We don't see Tesla as a luxury competitor ... we see Tesla as a disruptor in the automotive sector, especially when it comes to electric vehicles."
The EQE SUV is produced in the Mercedes-Benz plant in Tuscaloosa, Ala. The company's battery factory in nearby Bibb County supplies the SUV's battery.
Mercedes-Benz
Mercedes' strategy seems to be working. It sold 7,341 EVs in the first quarter of 2023, an increase of 251% versus the prior year. Electric vehicles now account for 12% of the company's sales in the U.S., the company said.
"Luxury buyers are more interested in EVs. They have higher disposable income and are tech orientated," Jessica Caldwell, executive director of insights at Edmunds, told ABC News. "Tesla redefined what it means to be luxury ... but its market share is now decreasing. Tesla peaked in 2019 when it controlled 80% of the market."
EVs now make up 6% of the U.S. automotive market. Range anxiety and public charging availability are still top reasons drivers are not switching to electrics, Caldwell said.
"Charging is still a big roadblock for customers," she said. "Mercedes' charging stations are a reassurance to customers and a good, though expensive, marketing strategy."
MORE: Automakers look to the South to build electric vehicle batteries
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