Mercedes Concerned Over Warranty Costs For EQC

SEP 7 2018 BY DOMENICK YONEY 54

Will slowly ramp up production to reduce risk

The Mercedes-Benz executive in charge of production and supply chain management, Markus Schaefer, says the company will slowly ramp-up production of the recently revealed Mercedes-Benz EQC 400 4MATIC after it begins early next year at its plant in Bremen, Germany. The move is meant to reduce the risk of warranty work and ensure its customers have a great ownership experience.

In attendance at the vehicle’s launch in Sweden, Schaefer made clear that the concern centered mostly on the vehicle’s batteries which are to be constructed at its facility in Kamenz. While the automaker has built its own batteries in the past, most notably for its Smart ForTwo Electric Drive vehicles, the scale of production of the Mercedes EQC is expected to be significantly higher.

Although the executive expressed confidence in the automaker’s own factories, saying “I’m not worried about the production plants in Bremen and Beijing. I know their capability, and they have proven they can ramp up in lightning speed,” he seemed slightly less confident in suppliers for battery components. Said he of his concerns,

It’s the supply chain behind the doors of Kamenz. There are hundreds of components that have to come together from various new suppliers, Tier 2 and Tier 3, which are in the background, and we have to see their performance.

If all goes according to plan, sometime after beginning production in Germany, the all-electric crossover will commence manufacture at its facility in Beijing, China. It will then begin arriving in European showrooms around the middle of 2019, while prospective buyers in the United States will have to wait until 2020 to take delivery.

The Mercedes EQC is equivalent to the GLC in the automaker’s line and will feature all-wheel drive and the ability to sprint to 60 miles per hour in 4.9 seconds from a dead stop. The company poured cold water on its original U.S. range estimation of “up to 200 miles” and now says it will give a more accurate figure closer to its rollout on these shores. We calculate EQC owners can expect 222 miles of range from its 80 kWh (usable) battery, which is a similar distance as its premium crossover competitors.

Mercedes-Benz EQC

Mercedes-Benz EQC (wallpaper 2,560x – click to enlarge)
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Mercedes-Benz EQC (wallpaper 2,560x – click to enlarge) Mercedes-Benz EQC (wallpaper 2,560x – click to enlarge) Mercedes-Benz EQC (wallpaper 2,560x – click to enlarge) Mercedes-Benz EQC (wallpaper 2,560x – click to enlarge) Mercedes-Benz EQC (wallpaper 2,560x – click to enlarge) Mercedes-Benz EQC (wallpaper 2,560x – click to enlarge) 2020 Mercedes-Benz EQC 2020 Mercedes-Benz EQC 2020 Mercedes-Benz EQC 2020 Mercedes-Benz EQC 2020 Mercedes-Benz EQC 2020 Mercedes-Benz EQC 2020 Mercedes-Benz EQC 2020 Mercedes-Benz EQC 2020 Mercedes-Benz EQC 2020 Mercedes-Benz EQC

Source: Automotive News

Categories: Mercedes

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54 Comments on "Mercedes Concerned Over Warranty Costs For EQC"

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ffbj

So a ‘Tesla Killer’ in Super Slo-Mo!
https://www.theautochannel.com/news/2018/09/04/626970-2019-mercedes-benz-tesla-killer-eqc-launched.html
Information is preliminary and subject to change for U.S. market.
Yeah, like the chance of getting one. this decade. Maybe next decade.

Clive

Yes but Mercedes is a very large and very capable Tortoise…

Some Guy

In the real world, very large and very capable tortoises are either extict already or classified as endagered species that are on the verge of becoming extinct in the near future. Just saying…

Thriedel

Time will show how sustainable Teslas business model is. Mercedes is usually slow but with force and sustainability. The EQC is a Mercedes quality built product and due to its importance to MB and to ensure high grade quality to the customers they start slow. Better than trying to start fast ending up slow……..

Xavi7eleven

Or next century…

Jeff

How many years was the Tesla X delayed? This is MB’s first attempt at an all-electric car. You (pro-EV) folks should be HAPPY about the direction of other car companies instead of mocking them. I guess you’re just Tesla sheep.

antrik

It’s not their first attempt. They have the Smart, and they used to have the B-Class.

It’s the first under the EQ brand; and the first one supposedly designed from the ground up… Though apparently not really.

Jeff

Antrik, as you said, the Smart car and B-class were not conceived as EV’s. You can even say the EQC is conceived from a GLC, but I’d say this is the first wholehearted attempt by MB at a true EV. Why are the pro-EV not applauding the move?

terminaltrip421

as you said — they worship at the altar of Tesla forsaking all others.

antrik

The point is that it looks more and more like it’s *not* actually a wholehearted attempt. We probably won’t see wholehearted ones before 2021 or so.

It’s better than nothing though; and I think there is good reason to believe they *will* have more serious ones going forward… So I tend to agree that a lot of the comments here are overly negative.

Viking79

The problem I see with Legacy makers is they have some great looking EVs coming, but they are afraid to commit. They spec it so the gas model is faster (don’t want the EV model too fast), they only make a few of them. They price it high enough that they will manipulate the price to drive sales. They are targeting essentially Model S/X sales and specs from what will be the previous generation vehicle once these new EVs ship (Tesla will respond with updates to S/X, they are already planning them about that time).

Andy
Yet they’ll sell thousands without any issue, even if EV first adopters don’t like the EV specs. I’m not sure what you mean by “faster” either. The ICE GLC does 0-60 in 5.9s, and has a top speed of 118mph. It’s slower to 60, but 6 mph faster in its electronically limited top speed, which no one but Top Trumpers will care about as it’s irrelevant to most drivers (unless you live in some parts of Germany or you’re a criminal looking for a getaway car). The X is a current generation vehicle, and IIRC there are no plans to update it any time soon, especially the base 75D which is what it’s competing against. Personally if I has the cash to and was happy with <250 miles of range I would pick the EQC over the X 75D. largely because of the more premium experience MB will likely be able to provide. It's predicted to be cheaper too. As usual, as with most things. it really depends on what you prefer most in a vehicle. Are you a spec nerd and need that extra 0.5s acceleration, or that 10% fuel saving, or that better HUD, or the nicer interior,… Read more »
Speculawyer

Less range, no frunk, brand new model so there will be bugs, no dedicated charging network, doesn’t have years of UI experience & software code like Tesla….I guess if you want MB it makes sense. But objectively looking at specs, I can’t see it selling better than Tesla.

And why do you think it would be cheaper? Its has a bigger battery and MB doesn’t have their own battery factory AFAIK. I suspect that it wiil cost the same or more.

But I do love more EVs on the market.

John Doe

They have their own battery factory.

Some Guy

Which makes bateries from cells they source from third party. The cells (and access to them) are the key to success…

Andy

15 miles less (predicted EPA), so really not much in it.

Frunk – don’t care. Storage space isn’t particularly important to me as I have a Truck if needed, the smaller size is actually more useful to me.

Brand new model – a risk with every vehicle, but at least with Mercedes there will be an established dealer network for updates and repairs if needed.

No dedicated charging network – no, but will be able to use all the other non dedicated networks, including Electrify America’s which is going to be pretty large by the time it’s released (in Europe or NA).

UI and software code? – MB have decades of experience. ICE vehicles have UI’s and software you know. The EV part of the software is a relatively small part of the whole system. (Here’s MB’s MBUX which is what’s being used in the EQC https://techcrunch.com/2018/01/11/mercedes-benzs-new-mbux-in-car-assistant-and-smart-ui-rocks/ )

Which “objective” specs do you think are most important?

Current predicted prices range from £55-65k. The 75D starts at £72k, so at the moment it’s predicted to be cheaper.

cfox

MB may have decades of experience, but their UIs are *crap*, so apparently that experience has been wasted.

Mercedes does have a dealer network, but none of them are trained to deal with EVs, so that will take some time. And since the dealer network is 3rd party, it’s not like Mercedes can actually force them to train for it. Tesla has a network of “storefronts” with service, and they *all* know how to deal with EVs, of course.

Try spending some time in a Tesla – you’ll probably find that it’s superior to Mercedes. All Mercedes really has these days is their name. Their reliability is crap, it costs a fortune to service them, and their resale value drops like a rock because of these facts.

Andy
Crap? Your personal opinion. They’re generally considered pretty good, and the new one is supposed to be extremely good. Personal preference again – you may like the Tesla no physical controls and the UI experience, but again, many don’t. There’s no one size fits all option to, well, anything. EV’s are just the same as ICE vehicles, except have a different powertrain. They’re not mythical beasts. The rest of the systems work the same way, which is one of the benefits of a consistent process for established manufacturers. Mechanics are generally trained on all new vehicles anyway (or at least new powertrains), so an EV isn’t the massive jump you suggest it is. Besides the EV powertrain is considered more reliable, the things needing repairs on Teslas are the ancillary systems, something a general Mercedes mechanic could do because it’s likely to be the same other vehicles they’re repairing. Besides, if three of my local Mercedes dealerships can’t be bothered to get anyone trained on EV’s the forth one may well do… Reliability of all the premium brands (including Tesla) isn’t great, they’re (including Tesla) all expensive to maintain. The only benefit currently is the resale value, but we don’t… Read more »
Jason

If MB is anything like the other manufacturers then it will only be a select group of dealers that service it, or the dealers will need to opt in and pay to join.
If you live in a captial city I expect you’ll be covered, but everywhere else it will most likely be a long trip to get any service.

Andy

I live several thousand miles from the nearest capital city. For comparison sake of you live somewhere several hours from the nearest Mercades dealership then it’s likely you also live several hours from a Tesla service centre too. There are, to put it plainly, far more Mercades dealerships than Tesla service centres where ever you are. That may change in the future, but not in the next few years.

David Gould

> if three of my local Mercedes dealerships can’t be bothered to get anyone trained on EV’s the forth one may well do

> I live several thousand miles from the nearest capital city

Where is this? Because I’m having a hard time imagining a location on Earth that is both:

– local to not one, not two, not even three, but four Mercedes dealers!

– and several thousand miles from the nearest capital city.

I don’t mean to imply your proclamation of love for the the meh-ist of all Mercedes got away from you and caused you to depart from our common reality, nor would I want to believe that you consider the rest of us geographic Illiterates to deceive, so please do pinpoint the location of this mystical Mercedes mecca in the remote wilderness.

If you had been a Cadillac fan I could have let it go and let you continue the quest for the legendary lost ElDorado, but my respect for the Teutonic engineering spirit requires facts. Please enlighten us.

davb

Tesla’s dedicated charging network is a big selling point here in Scotland all four of them! compared to over a thousand public ones. Tesla may be big in the U.S. but their global presence particularly there dealer network is small. You can rant all you like about this comment, but it doesn’t alter the fact the nearest and only Tesla dealer and workshop in Scotland is over three hours away from me, as opposed to MB, Audi, Volvo, Nissan, Renault, Jaguar, Hyundai, Kia and more being in Inverness which is just half an hour away. Whilst Tesla makes nice cars, outside the U.S. they are not the be all and end all that some people make them out to be here.

GSP

I think you are confused about charging. You don’t need fast chargers near home. They are needed when you go to Spain or Italy or Norway, etc. for a holiday. If you are going to London you only need to make 2-3 charging stops on the way, and that is where you need need them, not at home. Tesla has the best network for travel. It is fastest, easiest to use (just plug in and charge) and the only network that covers all of the continent and British islands.

For charging near home, you have those 1000 slow chargers you mentioned, and household 220 V outlets to take care of that.

GSP

davb

O.K. GSP, I would like to see you do the NC500 only using the supercharger network or a trip around the Isle of Sky or the Inner or Outer Hebrides and see how far you get. It’s strange how many Teslas I see in the Highlands with there CHAdeMO adapters slumming it on our “slow chargers”.

peter904

“And why do you think it would be cheaper? ” Creative accounting and MB can well afford to subvent the price. Having a line of cash cows affords MB a luxury Tesla never had.

Jason
Reportedly $12bil investment, and this EQ is the best they can do? I guess it suits the people who just want more of the same, but really there is no innovation except the drive train (which really has already been innovated by others, so nothing really special there either). Will all the systems be integrated like it appears Tesla is (as evidenced by an OTA improvement to the ABS recently), or will it be the same old model where each system is a separate thing and you have to go back to the dealer for any adjustments? The Porsche looks great, the MEQ looks Meh! Tesla Model 3 is the first time people made a reservation for a car (at least AFAIK), 400,000 or so, and that is likely to realise ~$12bil turn over. Nissan Leaf is the next best with +300,000 sales in 8yrs. High priced Model X/S have about 50,000 sales annually. Yet here is MB supposedly invested $12bil on this EQ model (and I guess the “platform”). If they can sell 50,000 per year, then it will take about 8yrs to pay back that investment. And you have to consider each model will have a similar investment… Read more »
Andy

The $12B number is likely to be spread over multiple EV platforms and models, not just this one vehicle. That said, they sell around 160,000 GLCs each year in Europe and the US, so it’s not inconceivable that within 5 years they could be selling a fair few more than 50,000. There’s no way retooling and body design costs anywhere near the $12B either, or else they wouldn’t be able to make a profit on the lower volume sedans and larger SUVs they sell. Face lifting and increasing range in 3 years wouldn’t cost much at all, and mid life cycle updates are pretty standard in car manufacturing.

antrik

The talk about a $12 billion investment is pretty recent. It doesn’t apply to the EQC, which must have been in development for more than three years by now. Models coming around 2021 will be the true test.

antrik

The Model S and Model X are Tesla’s cash cows.

Of course that didn’t help much with the Model 3 ramp, because of scale — but that’s only a temporary issue. Why are you assuming that Daimler would be willing to sell these at a loss permanently?

Jason

There you go! Battery certainty. Tesla has the credentials and reputation in this space. Given the Leaf experience and early Bolt issues, the battery is one thing you want right. It’s the biggest long term item that can go wrong. Until a few years go by and we know the MB battery longevity, I think I’ll make mine a Tesla to be sure.

Get Real

Or like GM, they gimp the charging speeds on both level 2 and level 3 so as to not compete with their LICE crap and reinforce the false notion of EVs as really only suitable as commuter vehicles while Tesla does the opposite.

God/Bacardi

Baby steps…

xcat

Compliance mode engaged

Speculawyer

Not exactly a resounding expression of confidence in their engineering.

I think this thing won’t sell all that well. Stop trying to do ICE conversions….they are never as good as an EV designed from the ground up.

Henry

Extremely lame excuse from a behemoth that has over a hundred years of making cars and trucks. Aren’t they supposed to have the EQC completely validated and thoroughly tested before entering production ? Maybe quality is not that good at Mercedes these days ?

Will

I wish Benz belly up. Just build the damn thing and let the warranty cover

acevolt

This is really just a parts bin car, GLC body complete with drive shaft center hump and 2019 Mercedes A-class dash. They are definitely slow rolling getting into EV’s.

Blablubb

So what you are saying is that they made some smaller compromises to control costs and ramp up complexity? So they might actually be in a good place to produce volumes? What’s exactly wrong with it? Some companies have to earn money to finance their upcoming portfolio.

ThinkAhead

I really want the EV production to Ramp up. But this seems to be the car which suggest ‘We are in too but will be ready later’ . Thats what I feel about it. But let them price it and give the final spec. And the early models are most likely not going to be profitable but will be subsidized by the ICE divisions

antrik

No, this kind of corner cutting suggest that they want to be in a good place producing *low* volumes.

Of course this is not surprising, since judging by timing, the EQC started development *before* Daimler’s more serious EV push.

Marc Kessler

Nice and slow MB, while Tesla keeps pumping them out.

William L

Will you buy a car that the manufacture itself is worried about the problem?

Prsnep

This comment section here has me thinking most people here are not actually EV fans.

Chris O

I call it the snake pit as it’s habitually carpet bombed by anti-Tesla FUD bombers who clearly care about nothing else than their (master’s) short positions or whatever interest they really represent.

Andy

While others will take that comment to mean the pro Tesla FUD spreaders who spend their time complaining about every vehicle that isn’t a Tesla and/or just criticizing established manufacturers for making EVs.

antrik

Criticising established manufacturers for making *poor* EVs is valid. I agree though that the tone most of these commenters take is not very appropriate…

Some Guy

Slowing a ramp to reduce “risk” is just another version of saying that they can’t ramp faster, and want to keep the thing expensive because economy of scale does not kick in at small numbers. I bet the plant in Beijing can ramp exactly as fast as the bare minimum requirement for chinese ZEV credits demands.
By the time they are up and running at full pace in Europe (20-30 k units a year), Tesla will set up shop in the backyard of Germany with GF 4 and show them how it’s done.

Chris O

MB worried about ownership experience? Hmm, immense workshop bills have always been part of that ownership experience but I guess that becomes more of a concern if MB has to pick up those tabs itself which it will have to with 8 year mandatory warranty on EV powertrain components in the US. MB’s famous “quality” would become a liability for the firm rather than a business model.

peter904

I have owned numerous MB, Porsche, Audi, BMWs over the past 50+ years of driving . All fine automobiles, all similar in that they have evolved from a solid foundation. Over 5.5 years ago I bought a Tesla Model S (P038XX). “My Tesla is a better vehicle today than day it was delivered.” That is not something I can say about any other car/truck I have owned. Tesla has proven to me their high level of commitment to both BEVs and their customers. Thank you Tesla.

evMike

…a fast ramp-up is not required, as sales will be low anyway 😉

BillT

I am really surprised Mercedes and BMW aren’t being more aggressive about exploiting the window before Tesla brings the model Y to market in volume. Assuming Tesla doesn’t over-compromise the usability of the model Y in the name of aerodynamics it seems like model Y will be a formidable force in the market so getting ahead of it seems wise.

antrik

They can’t. They started getting serious only recently — not enough time to bring genuine competition to market before Model Y.

SJC

“..have a great ownership experience..”
At $80,000 it better be.

viriato

I prefer this. I hope the Mercedes buyers will not have the problems that Tesla buyers had, because many people could be concerned about the reliability risks buying EVs.