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Mercedes joins BMW, VW with outlook cut after China slump

Mercedes lowered its 2026 profit outlook, citing weaker China sales and higher material costs, following VW Group and BMW and raising questions about CEO Ola Kallenius' high-end strategy. Mercedes joins BMW, VW with outlook cut after China slump Record commercial pickup…

About EQ and CLA

Mercedes launched its EQ sub-brand in 2016 with a promise that electric cars would carry the star into the future. The first wave delivered impressive engineering: the EQS sedan, revealed in 2021 on a dedicated electric platform, boasted a vast Hyperscreen and one of the slipperiest shapes ever put into production, and the EQE, EQS SUV and EQE SUV followed. The smaller EQA and EQB adapted existing gasoline models. Buyers, however, were less impressed than engineers, and sales fell short of the brand's ambitions.

Critics blamed the rounded, aerodynamic styling that some called jellybeans, high prices and the sense that the cars did not feel special enough to replace an S-Class or E-Class. Mercedes responded by moving away from separate EQ model names and instead offering electric versions of its familiar nameplates. The most important of them is the CLA. The original CLA of 2013 was a compact four-door coupe that brought many younger buyers into the brand; the new generation is built on a fresh architecture designed electric-first, with efficiency figures that drew wide attention.

The CLA is now offered as an electric car and as a hybrid, with a wagon-like Shooting Brake joining the sedan, and the same platform underpins further compact models. Electric versions of the GLC and C-Class followed, while EQS and EQE models continue. Rivals include the Tesla Model 3 and Model Y, BMW i4 and the new electric 3 Series, Polestar 2, Hyundai Ioniq 6 and a growing roster of Chinese electric sedans. This page follows the whole electric story at Mercedes: CLA reviews and range tests, battery and charging technology, new electric nameplates, EQ model updates and discontinuations, sales results, China competition and recalls, along with the strategy debates over how fast the brand should move away from combustion.

EQ and CLA

Mercedes' electric push, from the jellybean EQS and EQE to the new CLA, an efficient electric and hybrid sedan meant to win back skeptical buyers.

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