Mercedes CEO Speaks Out Against Updated US EV Incentives
Ola Källenius believes the US government has the right intentions, however he warned against protectionistic side effects.
Mercedes-Benz CEO Ola Källenius has voiced his concerns about America's updated EV tax credit rules. The new legislation came into effect at the start of the year as part of the American Inflation Reduction Act.
Agreed upon last August, the updated rules heavily favor US-made EVs. Although Mercedes builds both the EQS SUV and EQE SUV in Alabama, both are too expensive to qualify for the $7,500 tax credit. Some of its electric models that could qualify, like the EQB, are made in Europe. When quizzed on the new rules, Källenius stated the following on an earnings call last week (via Automotive News):
"If political leaders make that a priority and are also willing to spend government money on that, that can be very helpful. If there are protectionistic side effects, that is unwelcome.
To peel back and go into perhaps a more protectionistic direction would stifle that economic growth and would not be good for export-oriented economies and companies like ourselves."
Mercedes has invested $1 billion into its Vance, Alabama plant in order to have it ready for the EV age. As mentioned above, two EV models are currently being produced at the 177,000-square-foot facility - the EQS SUV and EQE SUV.
More On Mercedes-Benz
The EQS SUV is currently on sale in the US, with prices starting at $104,400. The full-sized EQS SUV has optional third-row seating and a 305-mile EPA range in 450+ spec. Meanwhile, deliveries of the marginally smaller EQE SUV are expected to begin this summer.
The EQE SUV also has around 300 miles of range but only has room for five. Plenty of features the EQS SUV has, like the 56" Hyperscreen, can also be equipped on the junior EQE SUV.
Source: Automotive News
RECOMMENDED FOR YOU
Amazon Now Has Over 50,000 Electric Delivery Vans In Its Fleet
Ford’s Chinese EREV Bronco Would Do Great In America. But Don’t Hold Your Breath
It's Still Way More Expensive To Insure An EV. But That's Changing
Tesla Employees Leaked Their Thoughts About FSD. They Weren't Pretty
11 Minutes To 80%: There's A New Quickest-Charging EV In America
This $199 Gadget Brings Apple CarPlay To GM EVs. But There's A Catch
Volvo EX60 vs BMW iX3 vs Mercedes GLC: Which Electric Luxury SUV Should You Buy?