Mercedes-Benz shows off 8 new vehicles to dealers; electric CLA and GLC coming to U.S. in 2024

Mercedes-Benz’s annual North America dealer meeting was themed “Beyond” and offered an early look into how the nearly century-old inventor of the gasoline-powered vehicle will pivot to an electric century.

Over two days in Vancouver, British Columbia, late last week, Mercedes treated more than 350 U.S. and Canadian retailers to a product and technology show-and-tell.

“We are in the middle of a transformation,” Mercedes-Benz USA CEO Dimitris Psillakis told Automotive News. “We showed how products and technology support the strategy.”

Mercedes’ Chief Software Officer Magnus Östberg delivered a deep dive into the bespoke operating system underpinning the automaker’s next-generation software-defined vehicles.

Britta Seeger, Mercedes sales and marketing chief, expanded on the digital strategy, where software apps and subscription services will deliver recurring revenue streams for the factory and its retailers.

At the meeting, Psillakis told dealers fresh product and improved supply should lift U.S. sales by 5 to 10 percent this year. The German luxury marque delivered 286,764 vehicles in 2022.

Limited supplies and robust gross margins helped drive return on sales to a record 7.2 percent last year.

Mercedes Dealer Board Chairman Joseph Agresta said the product pipeline includes a healthy internal combustion engine and battery-powered model mix.

“There's a lot of EVs, and EV is certainly our future,” Agresta said.

“But there's still a commitment to the ICE vehicles," he said. "The ICE vehicles are going to support profitability and volume for some period of time."

Dealers saw eight vehicles at last week's event, including the redesigned E-Class sedan, AMG SL 43 roadster and Maybach EQS SUV.

Mercedes is aiming for EV kingpin Tesla Inc.'s sweet spot with an electric CLA sedan and an electric GLC crossover, indicating Mercedes could ditch the EQ branding for its electric vehicle lineup.
The compact CLA should get 400 miles of driving range and arrive in U.S. stores next year.

Sources described the sedan as larger than the combustion engine CLA but with a sleeker profile. The interior carries over the digital-first cockpit design of Mercedes’ current electric models.

The battery-powered CLA will be Mercedes’ conquest vehicle for the EV age, aiming to poach Tesla’s young, tech-focused consumers. “There's a recognition that CLA brings 60 percent new buyers to the brand,” a dealer said.  

The electric GLC is a successor to the EQC electric crossover, which was to be Mercedes’ first mass-volume EV in the U.S. But that launch was scuttled due to the crossover's limited range, which was deemed inadequate for the market.

The GLC EV will arrive next year with about 300 miles of range and an all-new design.

A dealer described the new crossover as having a rounded front and rear rather than the boxy styling of the combustion engine variant. The EV had a pair of power domes on the hood and a light signature running across the front.

Mercedes' light commercial vehicle unit also got spotlighted at the dealer presentation.

The automaker has an ambitious electrification plan for its passenger and cargo vans. Later this year, Mercedes will bring a battery-powered Sprinter to the U.S. A luxury midsize passenger van and a range of electric RVs will follow.

At the meeting, Mercedes revealed a large cargo van concept named Sustaineer, with range-extending solar panels on the roof. It should arrive in 2025 with a 275-mile range. A dealer described the vehicle as an “upfitted Sprinter” van.

Mercedes-Benz is betting big on EVs, committing to going all-electric in markets that allow it by early next decade.

Seeger said Mercedes expects electric vehicles to account for 40 percent of new-car sales in the U.S. by 2026 and 70 percent by 2030, according to a retailer.

The U.S. is Mercedes' No. 1 EV market globally, Seeger said. The brand delivered about 12,000 electric vehicles in the U.S. through April, nearly as many as it sold in 2022.

Mercedes will adopt a “two-speed” sales strategy in the U.S., where EV adoption is uneven.

“We don't have a one-size-fits-all EV approach,” Psillakis said. “We have an approach where we follow markets and regulatory demands, and we'll adopt our approach to each and every market accordingly.”

He said ZEV states, such as California, have “strict and very aggressive” emissions regulations. But in the hinterland, EVs are still an afterthought.

“We'll go faster in ZEV states with more promotional programs and marketing,” Psillakis said. “And, in states where the adoption rate is lower, we'll go at lower speeds.”

At the meeting, Mercedes previewed a marketing campaign for the third quarter highlighting the brand’s electric portfolio and top-end AMG and Maybach brands.

“It was not the traditional old-person Mercedes ad,” a dealer said.

The youth-focused marketing acknowledges Mercedes’ changing demographic. The automaker told dealers that 25-year-old and younger buyers account for 20 percent of the brand’s U.S. sales.
Mercedes also announced programs to drive retailer throughput and profit.

The automaker will offer a $500 dealer bonus on GLA, GLB, CLA and C-Class units sold or leased from June through August. And Mercedes will offer existing customers $1,000 toward a new vehicle in June to drive repeat business.