All Access

Climate Deals

Standard

Climate Deals Thought Bubble

Thought Bubble

Climate Deals Alerts

Alert

mustard

BFD Expert Voices - Climate Deals

BFD Expert Voices

Electric vehicles pose a thorny question for luxury automakers. How can luxury models stand out — and justify their price tags — when barebones EVs are ultra-quick, whisper-quiet, cutting-edge computers on wheels?  

Why it matters: Mercedes — like Porsche, Audi and Genesis — has not found the answer. 

What's happening: Mercedes hopes to always build on its reputation for premium engineering, whether you're driving or being driven.

That in theory means the "most modern driving systems," says chief engineer Drummond Jacoy, plus quick charging and unique software features.

Details: The EQS 580 SUV's drive was buttery smooth and the cabin was sanctuary silent — exactly what you'd expect from a six-figure Mercedes.

Yet those were the only qualities that felt different from Kia, Hyundai, Ford and GM — which have made leather-bound EVs at half the price that are just as fun, fast and comfortable to drive. 

Zoom in: Mercedes tries to be different via software, such as with coaching programs that aspire to spa-like experiences while driving. 

They include a "warmth coach" that imbues the cabin with rumbling bass and an orange glow in cold weather, and a "vitality coach" that brings some pep. 

The EQS also features a custom fragrance. 

Reality check: These features felt cloying and accentuated just how little a Mercedes EV has to offer compared with competitors.

Bottom line: I constantly asked myself: "This is what $126,000 buys you?"

It has to be more than a warmth coach. Right? 

1 big thing: Pursuing ultimate electric luxury

The Mercedes EQS 580. Photos: Alan Neuhauser

Mercedes dropped off a fully charged EQS at my house outside Boston. Over the course of a week I drove it all over town and on a few highway trips to and from Rhode Island. 

Big picture: The vehicle is Mercedes' first full-size electric SUV — a vessel for the automaker's every bell and whistle.

The idea is to make you feel, my colleague Joann Muller wrote this spring. 

The passenger touchscreen provides one example. My wife, Terry, could connect headphones to play her own tunes or podcasts while I drove. Neat idea.

Except that the screen's curve and glossy finish reflected directly into my eyeballs. Bad execution. 

Base price: $104,400 for the EQS 450+ SUV

Price as tested: $125,950 for the EQS 580 4MATIC SUV premium trim.

Charge time: 31 minutes from 10% to the recommended 80%. Great for a vehicle this big.

Silky-smooth ride, whisper-silent interior.

HD-quality backup camera. You can watch NFL Red Zone on that thing.

A casino on wheels. Blinking lights, honest-to-god software pop-ups. I half expected the dash to shove a drink into my hands.

Near-constant safety alerts. I've never felt so browbeaten by a vehicle.

Worthless cruise control. Repeatedly sounded a klaxon as if there were a torpedo in the water, yelling at me to put my hands on the wheel — no matter how much I jostled or squeezed the steering grips.

All the aesthetic thrill of a European tour bus.

Bottom line: You deserve better. Mercedes seems to have let itself get distracted by incomplete ideas and charmless software features, none of which make the six-figure price tag seem worth it.

2. The BFD: Driving a $126,000 SUV

A photo of the blue-glowing interior of the Mercedes EQS 580, which features screens across the entire front dash of the vehicle.

The EQS 580 features three screens spanning the dashboard. 

Three-row SUVs are the not-so-new minivan, and the EQS 580 is no exception.

State of play: The interior is cavernous. There was ample room for my then-1-year-old and all her things.

Her seat was a little far for me to reach while driving — I couldn't as easily pass her a stuffy or a yogurt pouch. 

On the other hand, installing her car seat was a breeze.

Bottom line: Other three-row electric SUVs are hitting the market. But if you've got $126,000 burning a hole in your pocket and insist on having the Benz badge, this one works as a family hauler.

3. Parents corner

This Mercedes works well as a family hauler.

Mercedes is investing $63.5 billion in its electric vehicles through 2026, with aspirations to take over the luxury slot being vacated by Tesla. 

State of play: Tesla's focus on cheaper mass-market models has made it the dominant electric automaker in the U.S. It alone accounted for 50% of domestic EV sales in Q3.

Yes, but: Tesla has seen far more customer interest in its mainstream Model 3 and Y vehicles than its pricier S and X offerings. That's created opportunity at the top of the market.

The latest: Mercedes is seeking the luxury crown by taking aim at Tesla's two marquee features: an ultra-fast charging network and reliable self-driving tech.

Zoom in: Mercedes this fall is opening its own first U.S. charging locations in Atlanta.

The hubs will featuring lightning-quick 400 kilowatt chargers. That's faster than what any EV on the market can accept. But it's Mercedes flexing its muscle on what's to come.

Meanwhile, the automaker this year announced it'll also begin making its vehicles compatible with Tesla's charging standard, effectively reassuring Mercedes drivers that they'll be able to find a reliable charger wherever they go.

Plus: Mercedes plans to introduce Level 3 self-driving next year — making it more advanced than Tesla's Level 2 version of self-driving.

Mercedes even will accept liability if there's a crash, CEO Ola Källenius told the LA Times this summer.

Of note: The feature will be limited to mapped sections of highway, and only up to 40 mph. (Los Angeles drivers, rejoice.)

Zoom out: These big announcements may be aimed at stoking flagging sales. 

Mercedes dealers in September needed 82 days to sell EQ models — more than twice as long as BMW's 38-day turnover rate and far above the luxury market's average of 57 days, Automotive News reported this week.

Between the lines: Warmth coaches and specialty fragrances aren't convincing luxury shoppers to spend $126,000. But an ultra-fast charging network and next-gen guilt-free self-driving just might.

4. What's next: Mercedes' electric ambitions

A photo of a white Mercedes EQS 580 electric SUV, taken from the front drivers-side quarter panel, with the car parked in a residential driveway.

The EQS 580 is one of only three-row EVs on the market.

Data: Automotive News; Chart: Axios Visuals

The EQS is Mercedes' bestselling electric brand this year, leading the smaller EQB SUV as well as the EQE. But sales lag other electric SUVs on the market. 

5. How the sales stack up

Welcome back to Wheels! This week: The Mercedes EQS 580 SUV.

What's the German word for nervous corporate decisions? 

That's it! Thanks to George Moriarty and Brad Bonhall for edits, and thank you for tuning in to Wheels.

October 21, 2023

1 big thing: Pursuing ultimate electric luxury