Mercedes-Benz slipped to third place in the U.S. luxury sales race last year as rivals Lexus and BMW outsold it amid the pandemic.
In 2021, the brand will again face competition from traditional rivals while also contending with Tesla Inc.
Because Tesla only releases global deliveries and does not provide model sales by country, it’s unclear where it stands in the U.S. luxury race. But Jeff Swickard, chairman of the Mercedes-Benz Dealer Board and CEO of Swickard Auto Group, knows Tesla continues to gain in popularity as electric vehicles gain more traction. His group has 19 stores in Alaska, California, Georgia, Oregon and Washington, and four of them are Mercedes dealerships.
“We can’t ignore the fact that Tesla’s made significant strides in the U.S. and globally selling electric cars and that appetite exists,” he told Automotive News. “Tesla is a threat, and I think it’s a viable competitor.”
Mercedes does not plan to let Tesla gobble up share. By 2030, it expects plug-in hybrids and fully electric models will account for more than half of its global sales. In the U.S., Mercedes has launched an EQ subbrand, with the first model, the EQS sedan, expected this year.
It also plans to get into the commercial van space, with the eSprinter van coming as early as mid-2023.
Swickard said Mercedes is in a good position to compete with Tesla as it brings out its own EV models because of its years of experience and manufacturing know-how.
“If you look at the fit and finish of a Mercedes-Benz and compare that to a Tesla, I think you’ll realize the generations of engineering and everything that goes into a Mercedes-Benz is so superior,” he said.