Mercedes-Benz has officially started production of its first-ever all-electric EQ model, the EQC crossover.
- Production has officially started on the Mercedes EQC electric crossover
- Mercedes has the ability to throttle production to maximize supply
- The EQC is expected to have a 275-mile plus range and goes on sale in 2020
The vehicle is built at Mercedes’ Bremen, Germany plant at which the automaker also produces other C-Class variants, including the C-Class sedan and wagon as well as the GLC and GLC Coupe.
Importantly, the production line is malleable enough to allow Mercedes to respond to market demand for the EQC. That Means, it’s not locked into a specific build ratio for the models produced at the plant.
Mercedes spins this as a way to ensure exacting levels of production quality. Really, though, allows the automaker not to overbuild the EQC, thereby over saturating the market and driving down costs (and company profits).
For those not in the know, most automakers usually design production lines to include a production ratio. For example, for every Bolt EV Chevrolet builds, it must also build two Sonic models. Does the market demand a two-for-one build ratio? No, not even close. Is Chevy locked into it anyway, and essentially build way, way more Sonics than it’ll ever be able to sell? Yes, yes it is.
With the flexible production line, Mercedes avoids this pitfall.
It will be interesting to see how the EQC performs in the marketplace. I assume, given its brand bona fides and its range, which, according to Mercedes, has been calculated between 276 and 292 miles per charge, it will sell well. That is, at least initially.
Within the next six years, 207 new all-electric vehicles will go on sale globally. So although Tesla and a few other new luxury entrants into the EV space have pretty clear air, they won’t for long. Competition will get very, very stiff. And that’s why it’s such a good thing that Mercedes can turn down EQC production.