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The EQS Promises To Turn Things Around For Mercedes Benz In The EV Race

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The EQS Promises To Turn Things Around For Mercedes Benz In The EV Race

The iconic Mercedes-Benz, subsidiary of Daimler AG (OTC: DDAIF) can brag that it gave the world the first production automobile. It has a history as an innovator and a relentless pursuer of quality and engineering excellence. It has a status as many consumers find owning a Mercedes-Benz is a sign they have made it in life. But the automotive world is changing as EVs are taking over the world, forcing automakers to race to develop battery powered vehicles, including cars that can drive themselves.

These new technologies are challenging traditional automakers and even luxury brands like Bayerische Motoren Werke ADR (OTC: BMWYY) BMW and Volkswagen Group (OTC: VWAGY)-owned Audi. Mercedes-Benz's is no exception as the three-pointed star has been a bit slower than some to adapt to the electrification challenge. But, the EQS that will be revealed on April 15th is set to change that.

The German luxury brands are also facing challenges in the growing and extremely important Chinese market from Tesla Inc (NASDAQ: TSLA) as well as Chinese upstarts such as Li Auto Inc. (NASDAQ: LI). The three big German brands have controlled 60% of the luxury market in China in the past, but their share is eroding, according to a report from Piper Sandler, as Tesla is conquering China with new stores and its Giga Shanghai factory. Mercedes-Benz has heritage, prestige, talent and a lot of experience in its favor but it needs to catch up in technology as EVs are more about software than hardware.

The EQS Pitch

The 2022 Mercedes-Benz EQS stakes its claim on a luxury, electric future and the stakes are high. The EQS is a meticulously designed flagship sedan that is a result of a new electric platform and performance advancements. This model is an unapologetic pursuit to set a new benchmark for a full-size luxury sedan that also happens to be electric. In other words, it should be as good as it gets.

The Car

The luxury electric sedan is meant to show American consumers what Mercedes can deliver EV-wise. The German automaker is banking on a successful rollout of the EQS in North America. The EQS is the 17-foot-long flagship derivative of the S-Class, Mercedes-Benz's top-of-the-line luxury sedan that has a base price of $110,000. The pricing on EQS hasn't been revealed and the car's exterior details will be kept under wraps until its reveal. Like in a Tesla, everything is only a software update away. With such a big leap, a fully loaded EQS makes the new S Class series of full-size luxury sedan feel like old news. If the EQS looks good enough and comes to a similar price of the immensely popular S-Class, it has all that it takes to be the best premium EV in the world. If Mercedes Benz delivers on those two things alone by successfully combining its legacy know-how with advanced performance, every automaker should fear the EQS.

A Beginning Of A New Era

So far, Mercedes had a completely flexible platform in place with hybrids, ICE, and BEVs. Christophe Starzynski, head of the EQ brand, added that Mercedes will add three more electric vehicles to its U.S. portfolio by 2025, namely the EQE and two SUVs.

Mainstream EV Adoption In The U.S. Is Right Around The Corner

Wide EV adoption could come even faster than expected with President Biden's infrastructure plan. But automakers will need to do much more than edge out Tesla if they hope to capture the attention and dollars of U.S. consumers. Last year, EVs accounted for less than 2 percent of U.S. car sales, according to Automotive News. Sweeping change takes time, money and a long-term commitment. But the EQS is the next level of the EV architecture that could easily set the bar for a luxury electric vehicle.

The EQS will probably be Mercedes' first EV to come to North America which means there will be a lot riding on it when it does come out. If the company is going to make good on its promise to release 10 new EVs by 2022, it really needs to push that acceleration pedal.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you're interested in becoming an IAM journalist contact: contributors@iamnewswire.com

The post The EQS Promises To Turn Things Around for Mercedes Benz in the EV Race appeared first on IAM Newswire.

Photo by Håkon Sataøen on Unsplash

 

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