(DAVENPORT, Iowa) — An eighth person was rescued overnight from a partial apartment building collapse in Davenport, Iowa, officials said, adding that no one appears to remain missing.
More than a dozen people self-evacuated when the six-story residential and commercial building partially collapsed on Sunday afternoon, Davenport Fire Chief Michael Carlsten said.
“It felt like there was an earthquake, or somebody had rammed a bulldozer into the building,” Linnea Hoover, a building resident and journalist at ABC Davenport affiliate WQAD, told ABC News.
“I can’t describe the shaking. It felt like the ground was going to fall out from under me,” Hoover said.
Seven people were rescued from the site on Sunday and the eighth victim was extracted overnight, officials said Monday morning. That victim is recovering at a hospital in unknown condition, officials said.
No deaths have been confirmed and there’s no credible information that anyone is missing, officials said.
Hoover said she saw rubble, smoke and dust in the stairwell as she evacuated the building.
Once outside, she said she saw people running and screaming.
The cause of the collapse is unknown, officials said.
The building remains structurally unsound and not safe for first responders, officials said.
ABC News’ Alex Perez, Andy Fies and Ahmad Hemingway contributed to this report.
(WASHINGTON) — After months of back and forth, House Republicans and the White House this weekend unveiled a deal on raising the nation’s $31.4 trillion borrowing limit while implementing some caps on government spending and other policy changes.
The legislation, which was released publicly on Sunday, will need to be approved by Congress within days to avert a historic default that could begin as soon as June 5, Treasury Secretary Janet Yellen has said.
Otherwise the U.S. will be unable to pay all of its bills — sowing unprecedented economic turmoil, including lost jobs and major hits to stock markets.
President Joe Biden has vowed to sign the debt deal if it passes the House and Senate. A House vote is slated for Wednesday.
Below are key takeaways and questions about the debt and spending bill:
What’s in the debt ceiling bill?
The agreement is a two-year budget deal that would also separately raise the debt limit for two years while keeping non-defense spending roughly flat with current levels in fiscal year 2024 and increasing by 1% in 2025. The newly reached agreement would suspend the debt limit through January 1, 2025 – taking away the threat of default for a few years.
The new debt ceiling deal has no changes to Medicaid and fully funds medical care for veterans. However, there are new SNAP eligibility requirements, such as placing time limits on certain Americans over the age of 54, according to sources from the White House.
Speaking about the agreement, a White House official said that President Biden and his team wanted to ensure that no one lost any health care in the agreement and that poverty would not increase as a result. When asked for an estimate on the net deficit reduction from the agreement, a White House official said discretionary savings are “likely” to be in the $1 trillion range, but would have to wait on the CBO score.
When does it have to pass?
Soon: While the treasury secretary has cautioned that estimates of the so-called “X-date” for default can vary, she most recently predicted the deadline to be June 5, “based on the most recent available data.”
Speaker Kevin McCarthy has said the House would vote on the bill on Wednesday. The Senate, which returns to Washington on Tuesday, would then begin processing the legislation on Wednesday night, Majority Leader Chuck Schumer told Democrats in a letter.
But under the chamber’s rules, it would only take one lawmaker to possibly delay approval for up to a week — past the X-date. Sen. Mike Lee, R-Utah, has threatened just that unless he feels the deal has “substantial spending and budgetary reforms.”
Schumer appeared to reference such obstacles in his letter to Democrats: “Due to the time it may take to process the legislation in the Senate without cooperation, Senators should prepare for potential Friday and weekend votes.”
Will the debt ceiling bill pass?
McCarthy and President Joe Biden think so, with McCarthy predicting on Sunday that both a majority of his conference and some Democrats would come together to approve the legislation.
The bill “doesn’t get everything everybody wanted,” he acknowledged, “but that’s, in divided government, that’s what we end up with.”
“This is a good, strong bill that a majority of Republicans will vote for,” he told ABC News’ Trish Turner.
And with Biden’s backing, “I expect his party to be supportive as well,” McCarthy said.
House Minority Leader Hakeem Jeffries confirmed during an appearance on CBS’ Face the Nation that Democrats will likely vote for the bill. But he didn’t offer specific estimates.
“I do hope and expect to see a significant number of House Republicans voting for this agreement. It’s my understanding that they are committed to producing at least 150 votes, if not more,” Jeffries said. “They were the ones who negotiated this agreement with the White House. And I expect that they will provide a significant number of votes to get it over the finish line.”
Republican Rep. Dusty Johnson of South Dakota said on Sunday that the more votes they are able to whip — from both sides — the better it looks for the nation.
“I think it is certainly plausible that we could get 218 [votes], although I think it’s going to look a lot better for this country if we can put a big number up on the board,” he said on CNN’s State of the Union. “Democrats like Joe Biden and some in the House coming together with Republicans to pass this.”
Outreach and whipping efforts for lawmakers on both sides of the aisle have been underway since the deal was first announced Saturday night, sources familiar have told ABC News.
In a statement on Saturday, Biden said, “I strongly urge both chambers to pass the agreement right away.”
Returning to the White House on Sunday, Biden was asked by ABC News’ Elizabeth Schulze: “Are you confident this deal will get to your desk?”
“Yes,” he said.
Political reactions
Biden and McCarthy stressed their deal as a compromise reflecting the bipartisan reality of Washington right now, but both some liberals and hard-line conservatives reacted with dismay — having urged their respective leaders, throughout negotiations, not to cede too much.
“This ‘deal’ is insanity. … Not gonna vote to bankrupt our country. The American people deserve better,” Rep. Ralph Norman, R-S.C. and a member of the House Freedom Caucus, tweeted.
Rep. Chip Roy, R-Texas and another member of the House Freedom Caucus, was more blunt, tweeting that the bill was a “turd-sandwich.”
Rep. Johnson said on “State of the Union” that despite the criticism, he thinks at least some of those “House Freedom people” will vote for a “fantastic deal.”
He shrugged off resistance from others.
“Let’s be honest, [Rep.] Bob Good will not vote for this thing. And it doesn’t matter if Mother Teresa came back from the dead and called him, he’s not voting for it. He was never going to,” Johnson said.
Across the aisle, Democratic Rep. Pramila Jayapal of Washington, the Progressive Caucus chair, declined to say if she would support the legislation either — and that congressional leaders should “worry” about garnering enough support from progressives like her.
In particular, more left-wing Democrats have criticized Biden for negotiating under the threat of default while agreeing to some work requirements on federal aid.
What are the risks of default?
Economists have warned the U.S. being unable to fulfill financial obligations would put millions of jobs at risk, increase unemployment levels and lead to higher prices for everyday items.
A default could also result in Social Security, Medicare and Medicaid payments — as well as military pay and veterans benefits — going unpaid or being delayed.
As the negotiations came down to the wire, Americans who depend on those checks expressed growing concern and anxiety surrounding their ability to pay rent, buy groceries and other daily expenses if default were to occur.
Air Force veteran Jacob Thomas in Minneapolis told ABC News’ Elizabeth Schulze the uncertainty over default was already hitting American military families.
“Even if a deal is reached, everything winds up being OK next week, that still means that right now, families and veterans across the country are having to think about, ‘What does it mean for me to have to ration my current paycheck or my current disability paycheck?'” Thomas said.
Fred Gurner, 86, of New York, told ABC News that he uses his Social Security payment for his $800 rent.
“It’s very stressful, gives me a heart attack,” Gurner said about how the issue has become politicized.
And Susan Prahl Meachum, a 64 year old living in rural Virginia, said she will “lose everything” if there is no deal to raise the debt limit in time.
“We’re human beings,” she said, “and we’re doing the best we can with what we’ve got.”
ABC News’ Chris Boccia, Adam Carlson, Peter Charalambous, Katherine Faulders, Alexandra Hutzler, Amanda Maile, Molly Nagle, Elizabeth Schulze, Rachel Scott and Trish Turner contributed to this report.
(LONDON) — Ugandan President Yoweri Museveni signed one of the world’s harshest anti-LGBTQ bills into law on Monday.
The Anti-Homosexuality Act 2023, which was introduced in Uganda’s Parliament in early March, calls for the death penalty for “aggravated homosexuality,” which is defined as cases of same-sex relations involving people who are HIV positive as well as with minors and other categories of vulnerable people. Anyone else who engages in gay sex could face life imprisonment if convicted, while anyone caught trying to have same-sex relations could face up to 10 years in prison.
Ugandan Parliament Speaker Anita Annet Among was the first to announce on Twitter that the president had signed the bill into law, saying Museveni had “answered the cries of our people.”
“I thank His Excellency, the president, for his steadfast action in the interest of Uganda,” Among tweeted. “With a lot of humility, I thank my colleagues the Members of Parliament for withstanding all the pressure from bullies and doomsday conspiracy theorists in the interest of our country.”
An earlier draft of the legislation also criminalized “the offence of homosexuality,” meaning anyone who identifies as LGBTQ or “any other sexual or gender identity that is contrary to the binary categories of male and female” may be subject to imprisonment of up to 10 years if convicted. Lawmakers passed that version of the bill in late March after several readings and hours of debate. The proposed legislation was then sent to the president, who subsequently returned the bill to Parliament in April, asking for changes that would differentiate between identifying as LGBTQ and actually engaging in homosexual acts amid outcries from human rights groups and Western governments. Lawmakers passed an amended version of the bill in early May that does not criminalize those who identify as LGBTQ.
Homosexuality was already illegal in Uganda, as in over 30 of Africa’s 54 countries. It was first criminalized in the East African nation under colonial laws, but there had never been a conviction for consensual same-sex sexual activity since independence from Britain in 1962.
Human rights advocates had said they plan to challenge the legislation in court if it’s signed into law.
Prior to the bill’s signing, members of Uganda’s LGBTQ community reported being on the end of increasing discrimination and violence. Many said they are worried about their personal liberties and safety.
“There are no words to describe the feeling of being persecuted by everyone around you, just for being yourself, for being who you are,” Atuhaire, a Kampala-based member of Uganda’s LGBTQ community, told ABC News in March, using only their first name to protect their personal safety.
“The vitriol and we receive daily on social media has always been vicious, but nothing like the last few months,” Grace, a Ugandan LGBTQ activist, also told ABC News in March.
(ATLANTA) — A teenager was shot and killed early Sunday morning outside an Atlanta high school after a confrontation that began at a graduation party, according to police.
The Atlanta Police Department said it responded to calls about multiple people shot at 2:27 a.m. near Benjamin E. Mays High School.
Upon arriving at the scene, authorities said they discovered a 16-year-old who was critically injured. She was transported to the hospital and succumbed to her injuries, police said.
The Fulton County Medical Examiner’s Office confirmed to ABC News that Breasia Powell was killed in the incident.
A 16-year-old boy also checked himself into the hospital with a gunshot wound from the same incident, police said. He’s currently in stable condition.
Powell was scheduled to begin working for the City of Atlanta on Tuesday as a participant in their youth employment program, Atlanta Mayor Andre Dickens said during a news conference Sunday.
Atlanta Public Schools Police handed the investigation over to Atlanta Police Homicide, authorities and the school district said.
The Atlanta Homicide Department said it has reason to believe those involved were also high school-aged. There is also a $10,000 Crime Stoppers reward related to information about the shooting.
Dickens said he graduated from Benjamin E. Mays High School and has an intimate connection with its community.
Dickens went on to say students should be able to enjoy a “fun, enjoyable, safe summer” without violence. He said he hopes students make conscious and quality decisions while encouraging guardians to stay involved in their children’s whereabouts.
Dr. Lisa Herring, superintendent of Atlanta Public Schools, said the district will continue to offer employment resources and mental health services to students and their families.
“We recognize that this impact creates trauma,” Herring said.
The district offers free telehealth and counseling services for all students. Benjamin E. Mays High will have on-sight crisis teams Tuesday for teachers and parents who may need to identify resources for the summer months, according to the district.
(OVERLAND PARK, Kan.) — Ralph Yarl, the teenager who was shot in the head when he mistakenly went to the wrong house to pick up his siblings, is set to attend a walk/run event in Overland Park, Kansas on Memorial Day to help raise money for traumatic brain injuries.
Yarl is expected to participate in the “Going the Distance for Brain Injury” event, which takes place on Monday morning and features a 10K, 5k and 1.5 mile walk and an event for kids. Yarl suffered from his own traumatic brain injury following the shooting last month.
Yarl’s aunt, Faith Spoonmore, told ABC News in an interview on Friday that the shooting, which occurred on April 13, has taken a toll on her nephew both physically and emotionally.
“It makes it very real. You know, it’s one thing when you see it on the news and you hear about it when it comes into your house,” she said.
Spoonmore said that Yarl, who was shot in the neighborhood where he lived, is not ready to live at home again and has been living with Spoonmore and her family.
“Ralph is currently living with me. He’s been with me since the event. He is not comfortable going back to that area,” she said. “He is not comfortable going back to his house, his home … which is so unfortunate because he had a lot of great memories in that home.”
Spoonmore said that Yarl has been suffering from migraines since the shooting, which has limited his ability to play his favorite musical instruments – the clarinet and the bassoon.
“Now you see him and he’s by himself,” Spoonmore said. “But he’s not doing the things that he loves to do and it’s like he’s a shell. And that’s the problem, is that there is something that is missing within him.”
Ralph Yarl was shot on the evening of April 13 in Kansas City, Missouri, after he accidentally went to the wrong address to pick up his siblings, according to police. He was 16 at the time of the shooting, but celebrated his 17th birthday earlier this month.
Andrew Lester, an 84-year-old white man, was charged with one count of felony assault in the first-degree and one count of armed criminal action, also a felony, Clay County prosecuting attorney Zachary Thompson said during a press conference on April 17.
Lester pleaded not guilty and was released on April 18 on a $200,000 bond.
According to ABC affiliate in Kansas City, KMBC, Lester’s attorney Steve Salmon filed a motion last week to have the case sealed, arguing that the media attention has created a “bias” against his client.
“I think it’s important for his right to get a fair trial,” Salmon told reporters following the hearing.
Lester’s next court hearing is set for June 1.
Spoonmore said she hopes the shooting “does not stop [Ralph] from seeing the good in people,” and that the event on Monday shows him the support he is getting from the community.
“It would just be great just for Ralph to see all those people who have been pouring up a lot of love into him… there’s still so much love in this community,” she said.
James Lee and Bradley Gillespie in photos released by police. — Ohio Department of Rehabilitation and Correction
(CLEVELAND) — One of the two inmates who escaped from an Ohio prison has been found dead, authorities said.
Bradley Gillespie’s body was recovered in the Ohio River, the U.S. Marshals Services in Cleveland tweeted Sunday. The second inmate had been captured on Wednesday, authorities said.
The Allen County Sheriff’s Office warned residents on Tuesday to “be aware and use caution” after the two men escaped from the Allen-Oakwood Correctional Institution in Lima.
The inmates were identified by the sheriff’s office as Gillespie, 50, and James Lee, 47.
Lee was captured in Henderson, Kentucky, according to the Ohio State Highway Patrol.
Gillespie was convicted of murdering a man and woman in 2016 and was sentenced to 32 years to life in prison, according to Ohio Department of Rehabilitation and Correction online records.
Lee was convicted in 2021 of charges including burglary, safecracking and breaking and entering and was serving at least 20 years in prison, state records show.
Lee was first discovered missing during a prisoner count at 11 a.m. Tuesday, the Ohio State Highway Patrol said. An emergency count of all prisoners determined that Gillespie was also missing, state police said.
The two men were last observed on surveillance video inside the facility at 8:41 a.m. on Monday, state police said.
The men were believed to be in a red Mercury Capri that was stolen in Auglaize County, Ohio, according to state police.
The vehicle was located by police officers in Henderson, Kentucky, Wednesday shortly after 3 a.m. local time. Police attempted a traffic stop, but the vehicle fled before crashing into a fence, Henderson police said.
The inmates then fled on foot, Henderson police said. Lee was “immediately” taken into custody but Gillespie was not apprehended, police said. A shoe believed to have been worn by Gillespie was found two blocks from the location of the vehicle.
Henderson police asked residents to review any home surveillance they may have since Wednesday at 3:17 a.m.
Multiple county, state and federal agencies were involved in the manhunt. Police K-9s, water vessels, helicopters and drones have been used in the search, police said.
The U.S. Marshals Service, Ohio State Highway Patrol and the Allen County Sheriff’s Office were offering up to a $21,000 reward for information that led to Gillespie’s capture.
The Ohio Department of Rehabilitation and Correction is also conducting an internal investigation into the incident.
(SEATTLE) — A search was underway Sunday for a gunman who shot three people at a casino in Seattle, according to police.
The shooting unfolded at the Roxbury Lanes Casino in southwest Seattle just before 11 p.m. on Saturday, the Seattle Police Department said.
Officers responded to reports of multiple people shot at the casino and bowling alley and upon arrival discovered three victims suffering from gunshot wounds, police said.
The injured people were taken to Harborview Medical Center for treatment. A hospital official told ABC affiliate station KOMO that the victims are two men and a woman.
Shooting investigation at Roxbury Lanes Casino at the 2800 Block of SW Roxbury Street. KCSO Deputies on scene. Major Crimes Detectives responding.
— King County Sheriff’s Office PIO (@kingcosoPIO) May 28, 2023
The gunman entered the casino and immediately opened fire without warning, police said.
Investigators working to identify the gunman and determine motive for the shooting, officials said.
This is a developing story. Please check back for updates.
(RED ROCK, N.M.) — Three people were killed and five others were injured when a shootout erupted between two outlaw biker gangs at the annual Red River Memorial Day Motorcycle Rally in New Mexico, police said.
As tens of thousands of motorcycle enthusiasts converged on the Taos County resort town for the annual event and live music festival, members of the Bandidos and Water Dog biker gangs got into a fight in which multiple rounds of gunfire were traded between the two groups, New Mexico State Police Chief Tim Johnson said at a news conference Sunday morning.
Johnson said all eight people shot in the episode, including those killed, were members of the two biker gangs.
“I’ll apologize initially to the law abiding citizens that came to Red River to have a good Memorial Day Weekend, not the gangbangers that are ruining it for all of them, but for everyone there will be zero tolerance from this point forward,” Johnson said, adding that even people caught jay walking will be subject to arrest. “This is not going to happen again this weekend because we’re not going to allow it.”
As many as 28,000 bikers were expected to arrive in Red River this weekend for the 41st annual motorcycle rally.
The shooting erupted around 5 p.m. Saturday on Main Street on the east side of Red River when a confrontation occurred between members of the two biker gangs, Johnson said.
He said the fight was apparently over a photograph members of one of the gangs took with another outlaw biker gang in Albuquerque a few days ago.
“That spilled over to here, where they ran into each other again and a confrontation started. It started with words initially, then it turned into a fight, which then turned to shots fired,” Johnson said.
Killed in the shootout were two members of the Bandidos Johnson identified as Anthony Silva, 26, of Los Lunas, New Mexico, and Damian Breaux, 46, of Socorro, New Mexico. Also killed was Randy Sanchez, 46, of Albuquerque, a member of the Water Dogs, Johnson said.
Johnson said Jacob Castillo, 30, of Rio Rancho, New Mexico, a member of the Water Dogs, was arrested on suspicion of murder. Castillo was wounded in the incident and remained in a hospital on Sunday.
Two other members of the Bandidos who wounded in the shooting, Matthew Jackson, 39, of Austin, Texas, and Christopher Garcia, 41, were also arrested on charges that Johnson said were “somewhat unrelated” to the shootings. Jackson was taken into custody on a charge of unlawful carrying of a firearm inside a liquor establishment, and Garcia was arrested on a charge of possessing cocaine, Johnson said.
After being treated at a local hospital, Garcia and Johnson were booked at the Taos County Detention Center.
Three other biker gang members — ages 53, 31 and 43 — were wounded in the shooting and remained hospitalized Sunday, Johnson said. Their conditions were not released.
One of the wounded men was airlifted to a Denver hospital, according to the chief.
Johnson asked anyone who witnessed the gunfight or has video of it contact police investigators immediately.
At least 32 State Police officers and a number of other law enforcement officers from different agencies were already on patrol in Red River when the shooting broke out, Johnson said.
He said that on Friday, the New Mexico State Police received information from the Texas Department of Public Safety that 400 to 500 members of the Bandidos biker gang were riding from Texas to Red River.
Four days ago, two members of the Bandidos biker gang were arrested on charges stemming from a drive-by shooting in Lubbock, Texas, in which a member of the Mongols biker gang was targeted, authorities said.
“In early in April, I believe there was two shootouts, one in Oklahoma City, and another one in Dallas involving Bandidos,” Johnson said.
Johnson said that as long as members of the biker gangs remain in town, he could not guarantee everyone attending the motorcycle rally will be safe.
Red River Mayor Linda Calhoun said that based on a recommendation from the State Police, the city is encouraging most businesses in the city to remain closed for the remainder of the holiday weekend.
“We do realize that we have a town full of people that still need to eat and be taken care of. So, the ones who would open will be taking extra caution to make sure they keep everybody safe,” Calhoun said.
Officials in nearby Taos put in place an emergency curfew beginning at 10 p.m. Saturday. All alcohol sales were to be stopped during the emergency proclamation, which was posted on the town’s Facebook page.
The FBI and the federal Bureau of Alcohol, Tobacco, Firearms and Explosives are assisting the State Police with the investigation.
(LOS ANGELES) — One of the largest insurance agencies in the country will no longer accept applications for home and business insurance in California due to wildfire risks and the cost of rebuilding.
State Farm has ceased new applications, including all business and personal lines property and casualty insurance, starting Saturday, the company announced in a press release.
Existing customers will not be affected, and the company will continue to offer auto insurance in the state, according to the release.
The insurance agency cited “historic increases in construction costs outpacing inflation, rapidly growing catastrophe exposure, and a challenging reinsurance market” for its decision.
State Farm said while it takes its responsibility to manage risk “seriously” and will continue to work with state policymakers and the California Department of Insurance to help build market capacity in California, the decision was necessary to ensure the company remains in good financial standing.
“It’s necessary to take these actions now to improve the company’s financial strength,” the statement read. “We will continue to evaluate our approach based on changing market conditions. State Farm® independent contractor agents licensed and authorized in California will continue to serve existing customers for these products and new customers for products not impacted by this decision.”
A decadeslong megadrought and climate change have been exacerbating wildfire risk in California in recent years. Severe drought during the winter is leading to matchbox conditions in the dry season, allowing intense wildfires to ignite with the slightest spark.
The warm, dry climate that serves as fuel for wildfires is typical for much of the West, but hotter overall temperatures on Earth are increasing wildfire risk in the region.
Last year, the Mosquito Fire destroyed dozens of homes in El Dorado and Placer counties. In 2021, the Dixie Fire destroyed more than 100 homes in the town of Greenville.
The Creek Fire in 2020 became the largest single fire in California history, damaging or destroying nearly 1,000 structures and burning through about 380,000 acres.
Rebuilding from wildfire destruction is expensive, expensive, experts have found.
The reconstruction costs from the 2022 Coastal Fire in Southern California were estimated to be $530 million, and only 20 homes were destroyed, according to a report by property solutions firm CoreLogic.
In addition, the nationwide impact of California’s 2018 wildfire season — which included the Camp Fire, the most destructive in California history — totaled $148.5 billion in economic damage, according to a study by the University College London.
The state’s FAIR Plan provides basic fire insurance coverage for high-risk properties when traditional insurance companies will not, but that plan is the last resort, Janet Ruiz, director of strategic communication for the Insurance Information Institute, told ABC San Francisco station KGO.
“It’s a basic policy, only covers fire – you have to get a wraparound policy too to cover theft and liability,” she said.
(NEW YORK) — German automaker Mercedes-Benz has seen its share of the U.S. luxury market slip as customers traded in their V8 sedans and sport utility vehicles for Teslas. Now, the company is following in Tesla’s footsteps by building out its own charging network, accelerating its electrified fleet and adding Level 3 autonomous driving technology to its vehicles.
Mercedes’ goal is simple: Become the “most desirable electric vehicle luxury brand,” according to Dimitris Psillakis, president and CEO of Mercedes-Benz North America.
Psillakis is helping oversee the company’s aggressive push toward EVs. The first Mercedes EV, the futuristic EQS sedan, debuted in October of 2021. Four more models, including three electric SUVs, promptly followed. The EQS SUV and EQE SUV are built at the company’s Tuscaloosa, Alabama, plant. Mercedes’ brand-new factory in Bibb County supplies the lithium-ion batteries. Mercedes aims to go fully electric by 2030.
“To be the most desirable electric vehicle luxury brand, we have to strike a balance between good products and good design but also supportive service,” Psillakis told ABC News. “We don’t see Tesla as a luxury competitor … we see Tesla as a disruptor in the automotive sector, especially when it comes to electric vehicles.”
Mercedes’ strategy seems to be working. It sold 7,341 EVs in the first quarter of 2023, an increase of 251% versus the prior year. Electric vehicles now account for 12% of the company’s sales in the U.S., the company said.
“Luxury buyers are more interested in EVs. They have higher disposable income and are tech orientated,” Jessica Caldwell, executive director of insights at Edmunds, told ABC News. “Tesla redefined what it means to be luxury … but its market share is now decreasing. Tesla peaked in 2019 when it controlled 80% of the market.”
EVs now make up 6% of the U.S. automotive market. Range anxiety and public charging availability are still top reasons drivers are not switching to electrics, Caldwell said.
“Charging is still a big roadblock for customers,” she said. “Mercedes’ charging stations are a reassurance to customers and a good, though expensive, marketing strategy.”
The company’s charging network, which launches first in the U.S. and Canada and will be open to non-Mercedes models, could solve the country’s EV charging dilemma.
“The logic behind it is better service, convenience and taking away some worries customers have today on electric vehicles,” Psillakis said. “We care about the product … it’s our responsibility to offer the best convenience to our customers.”
Tony Quiroga, editor-in-chief of Car and Driver, said Tesla’s highly dependable supercharger network and extended-range models earned it a dedicated fan base. Premium brands like Mercedes are still struggling to overtake the ubiquitous Tesla Model 3 and Model Y, he argued, though Mercedes may be closing the gap. Tesla’s aging fleet could also convince consumers to look elsewhere, he argued.
“Mercedes doesn’t want to take a backseat to Tesla,” he told ABC News. “A charging network can be a big win for Mercedes.”
Quiroga pointed out that two Mercedes EVs — the EQ S450+ and EQ S580 — beat their EPA range estimates when Car and Driver staff conducted their extensive 75 mph tests on the vehicles.
“It’s very rare when a car beats its EPA numbers,” he said.
And Mercedes’ EV momentum will give it an edge over the competition, according to Robby Degraff, an analyst at AutoPacific.
“They’ve really hit all the right segments so far, from the larger EQS SUV to the EQE sedan,” he told ABC News. “If a loyal S-Class owner wants to go all-in on electrification, there should absolutely be a comparable EV, like the EQS sedan. That’s an approach and strategy I think Mercedes-Benz has really nailed down.”
Mercedes recently revealed the Mercedes-Maybach EQS 680 SUV, the first EV from the uber exclusive marque. The full-size SUV utilizes technology from the EQS SUV and is fitted with sustainably processed leather. Many of the vehicle’s parts and components are made from resource-saving materials, including secondary steel and recycled aluminum.
EVs, however, are expensive and Psillakis said Mercedes is not immune to rising interest rates and economic uncertainty.
“Obviously it’s affecting us, but we have a wide range of products in terms of style prices,” he said. “There is high demand for the new GLC. This vehicle is not affected at the moment by any high interest rates or inflation.”
EVs are one part of Mercedes’ long game; the company scored a “monumental achievement” when Nevada regulators certified its autonomous driving for public roads earlier this year. “Drive Pilot” will be included for model year 2024 S-Class and EQS models and is the only SEA Level 3 automated driving system approved by lawmakers, according to Mercedes. Psillakis said California may be the next state to approve the system, which operates at speeds up to 40 mph and is more technologically advanced than Tesla’s Autopilot feature.
“We have to make sure the expectation to customers is the right one and make sure the system is delivering,” Psillakis said.
The attention on EVs has not stopped Mercedes from perfecting its gas-powered SUVs and high-performance AMG models. Last month Mercedes revealed an updated E-Class midsize sedan and introduced the plug-in hybrid GLE 450e 4MATIC SUV. A new 2024 GLS model range will arrive in U.S. dealerships later this year.
“Mercedes is operating two companies at the same time,” said Caldwell. “Mercedes has an expansive EV lineup but the internal combustion vehicles are paying the bills. It’s expensive to run these two companies in parallel.”
Degraff said Mercedes’ internal combustion vehicles are still highly desirable and sought after by enthusiasts.
“Mercedes-Benz has been able to crank out seriously eye-watering performance just by tapping into mild hybridization and plug-in hybrids,” he said.
Psillakis dismissed concerns that the company’s fabled AMG division would lose its cachet in an EV world.
“EQS is electric and it is an AMG,” he said. “Yes, I do miss the sounds of a V8 engine. Do I miss the fun? The torque? The performance? No. AMG is not only sounds and horsepower. It’s also exclusivity, design and performance, which you can get in electric vehicles too.”
