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Mercedes (MBGAF) to Move EQS SUV Production to German Plant
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Mercedes (MBGAF - Free Report) plans to discontinue the production of EQS sports electric vehicles (“SUV”) at its Tuscaloosa plant in Alabama to make room for a new, longer-range EQC. The prototype of EQC looks like a combustion-engine GLC manufactured at a German plant.
The new EQC, also known as the GLC electric vehicle (“EV”), is expected to hit the production stage in the first quarter of 2026. EQC has a dedicated EV platform, unlike its first-gen counterpart, N293.
The EV platform is called MB.EA and it covers mid-size automobiles to land yachts. The EQS SUV and EQS Sedan are based on EVA2. Among the EV-specific platforms, the MMA will cover compact vehicles, whereas the AMG.EA will cover high-performance vehicles.
Per Automotive News, in the second half of the decade, EQS SUV productions will be moved to the Breman plant in Germany. It was Mercedes’ first fully electric vehicle that was built in the United States. Since then, Mercedes has also launched the EQE SUV.
EQC is expected to sell in high volumes, nearly 50,000 in its first year, which is more than double the EQS SUV volume.
Through September, Mercedes sold 7,086 units of EQS SUV in the United States. However, the sales of the company dipped in the third quarter to 1,596 units, down from 3,077 units in the corresponding quarter of 2022.
The all-new EQC features around 300 miles of range and a redesign. It has a rounded front and rear and is expected to cost less than $80,000 in the United States.
The EVs that are manufactured in the United States qualify for a $7,500 tax credit, which will be an advantage for EQC. Moreover, Mercedes sources batteries locally from its Bibb County factory.
With 15% of its total sales being EVs in the third quarter, Mercedes’ transition to electrification is gaining momentum in the United States.
Zacks Rank & Key Picks
MBGAF currently carries Zacks Rank #5 (Strong Sell).
The Zacks Consensus Estimate for VLVLY’s 2023 sales and earnings indicates year-over-year growth of 4.2% and 65.6%, respectively. The EPS estimate for 2023 has increased by 2 cents in the past 30 days. The EPS estimate for 2024 has increased by 11 cents in the past 60 days.
The Zacks Consensus Estimate for BYDDY’s 2023 sales indicates year-over-year growth of 160.2%. The EPS estimate for 2023 has increased by 62 cents in the past 60 days. The EPS estimate for 2024 has increased by a penny in the past 30 days.
The Zacks Consensus Estimate for MOD’s 2023 sales and earnings indicates year-over-year growth of 6.7% and 55.9%, respectively. The EPS estimates for 2023 and 2024 have increased by 16 cents and 9 cents, respectively, in the past 30 days.
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Mercedes (MBGAF) to Move EQS SUV Production to German Plant
Mercedes (MBGAF - Free Report) plans to discontinue the production of EQS sports electric vehicles (“SUV”) at its Tuscaloosa plant in Alabama to make room for a new, longer-range EQC. The prototype of EQC looks like a combustion-engine GLC manufactured at a German plant.
The new EQC, also known as the GLC electric vehicle (“EV”), is expected to hit the production stage in the first quarter of 2026. EQC has a dedicated EV platform, unlike its first-gen counterpart, N293.
The EV platform is called MB.EA and it covers mid-size automobiles to land yachts. The EQS SUV and EQS Sedan are based on EVA2. Among the EV-specific platforms, the MMA will cover compact vehicles, whereas the AMG.EA will cover high-performance vehicles.
Per Automotive News, in the second half of the decade, EQS SUV productions will be moved to the Breman plant in Germany. It was Mercedes’ first fully electric vehicle that was built in the United States. Since then, Mercedes has also launched the EQE SUV.
EQC is expected to sell in high volumes, nearly 50,000 in its first year, which is more than double the EQS SUV volume.
Through September, Mercedes sold 7,086 units of EQS SUV in the United States. However, the sales of the company dipped in the third quarter to 1,596 units, down from 3,077 units in the corresponding quarter of 2022.
The all-new EQC features around 300 miles of range and a redesign. It has a rounded front and rear and is expected to cost less than $80,000 in the United States.
The EVs that are manufactured in the United States qualify for a $7,500 tax credit, which will be an advantage for EQC. Moreover, Mercedes sources batteries locally from its Bibb County factory.
With 15% of its total sales being EVs in the third quarter, Mercedes’ transition to electrification is gaining momentum in the United States.
Zacks Rank & Key Picks
MBGAF currently carries Zacks Rank #5 (Strong Sell).
Some better-ranked players in the auto space are Volvo (VLVLY - Free Report) , BYD Company Limited (BYDDY - Free Report) and Modine Manufacturing Company (MOD - Free Report) , each sporting Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for VLVLY’s 2023 sales and earnings indicates year-over-year growth of 4.2% and 65.6%, respectively. The EPS estimate for 2023 has increased by 2 cents in the past 30 days. The EPS estimate for 2024 has increased by 11 cents in the past 60 days.
The Zacks Consensus Estimate for BYDDY’s 2023 sales indicates year-over-year growth of 160.2%. The EPS estimate for 2023 has increased by 62 cents in the past 60 days. The EPS estimate for 2024 has increased by a penny in the past 30 days.
The Zacks Consensus Estimate for MOD’s 2023 sales and earnings indicates year-over-year growth of 6.7% and 55.9%, respectively. The EPS estimates for 2023 and 2024 have increased by 16 cents and 9 cents, respectively, in the past 30 days.