Mercedes bets on V8 engines to 'regain its luster'
U.S.The German automaker is trying to reclaim the luxury crown by expanding its core SUV lineup, focusing on electric vehicles and a new strategy.
Once the dominant force in the U.S. luxury-car race, Mercedes is now trying to regain the position it has lost. From 2016 to 2018, it was the best-selling luxury brand in the U.S., ahead of all rivals. However, Mercedes now trails BMW and Lexus, ranking third.
Mercedes has set an ambitious goal of returning to the No. 1 sales position, targeting 400,000 vehicles a year in the U.S. by 2030, up about 100,000 vehicles from its current level. Still, that goal will not be easy.
According to Auto News, Mercedes plans to focus heavily on its core SUV lineup, hoping that by the end of the decade, the GLC, GLE and GLS models will account for 55% of total sales, up from 40% today.
Mercedes SUV models at a dealership in the U.S. Photo: Carscoops
Driving the German company’s shift is the upcoming launch of an electric GLC, along with updated versions of the GLE and GLS. All are aimed at boosting sales and modernizing the brand’s image in the U.S. market.
But that is not all the company is planning. In an interview with Auto News, Adam Chamberlain, CEO of Mercedes in the U.S. market, said the company “will spend more time designing cars in America, for Americans.” That includes expanding the number of vehicles using V8 engines and upgrading smaller models with six-cylinder engines. More engine choices and greater power are what American customers are interested in.
There are also several notable developments at high-performance division AMG. The electric four-door AMG GT will arrive at U.S. dealerships in 2026. With more than 1,000 horsepower, it will rival the Porsche Taycan and Audi e-tron GT.
AMG is also developing a midsize electric CUV, which was previously introduced in a meeting with dealers in Las Vegas. This points to the company’s new direction in producing high-performance electric vehicles.
The German automaker is not only hoping that the launch of a series of new models will help significantly increase its U.S. sales, but also wants to improve relations with its 384 dealers across the country, Chamberlain said.
Last year, in the National Automobile Dealers Association’s Dealer Attitude Survey, Mercedes ranked 25th out of 32 across all car brands. It has now risen to 13th place, and Chamberlain wants Mercedes back among the top five. He said: “This is a symbiotic relationship. If we do well, they do well.”
Chamberlain described the goal of reaching 400,000 vehicles a year in the U.S. as a rallying call to encourage unity among dealers. He added that “there is no reason why we can’t grow by about 20,000 vehicles every year.”
According to a dealer who attended the Las Vegas meeting, Mercedes is doubling down on investment in the U.S. because it is facing difficulties in the Chinese market, where domestic vehicles are on the rise.
