If there’s one thing I’ve come to appreciate about The Autopian audience is that y’all either have a van or greatly appreciate the vans other people have. If 2024 was “brat summer” then 2026 is “van summer.” You know else is having van summer? Well, if you read the headline and don’t have the answer to this question go grab another cup of coffee.
It’s Mercedes! The automaker has done the German thing of having over-invested in EVs and underestimated the downturn in Chinese demand. Thankfully, Mercedes does one thing consistently well: Vans. It also has a great looking EV van coming out. Vans!
What Mercedes doesn’t sell here (yet) is a small car. The President was in Michigan trying to build excitement ahead of the midterm elections and a random part of his pitch was tiny cars again. Tiny cars! This isn’t a terrible plan, as tiny cars are how BYD is hoping to break into the Chinese market. On the topic of Japan, our thoughts are with the people there facing another devastating earthquake which, again, is potentially going to disrupt the car market.
Mercedes Slumps After Weakness In China, Vans Come To The Rescue
Things have not been gut in Stuttgart, with historic automaker Mercedes-Benz taking it in die shorts due to various geopolitical issues, EV investments not yet panning out, and the weakness in the Chinese market.
As Bloomberg reports, this has meant a weak Q2 and a write-down due to the business in China not working out:
For the second quarter, adjusted operating earnings from carmaking slumped 26% from a year earlier to €909 million ($1 billion). The average selling price fell by 4.4% to €64,700 from a year earlier, underscoring the pressure from weaker pricing and product mix.
The worsening outlook in China also prompted Mercedes to take a €704 million write-down on investments in businesses there.
That’s not great. As Bloomberg points out, there is one part of the business that’s making up for some of the weakness in automotive and it starts with V and it rhymes with P and that stands for, uh, vans. I guess.
Vans! As Mercedes-Benz pointed out in its Q2 financial release:
With an adjusted RoS of 10.2%, Mercedes-Benz Vans once again achieved double-digit results in the second quarter of 2026. Adjusted EBIT increased by 3% to €454 million compared with the second quarter of 2025, driven by higher sales outside of China, positive contributions from aftersales and the leasing portfolio. At the same time, the results reflect net pricing pressure and product mix effects as well as the ramp-up efforts for the new Van Architecture. Mercedes-Benz Vans is currently executing its largest product investment programme in its history.
Mercedes-Benz Vans recorded second-quarter sales of 94,075 units, reflecting stable overall global demand with a strong performance in North America (+23%) and Europe (+5%) along with significant sales growth for eVans (+46%) compared to the second quarter of 2025.
I do love a Mercedes van. In fact, the eSprinter is maybe my favorite electric vehicle. The company knows how to make a van, and the new VLE looks kind of incredible. Mercedes has apparently improved its game when it comes to its latest generation of EVs, and if I ever get to drive one again I’ll let you know how that goes.
It’s a great time for vans, and Millennials (like myself) are apparently making vans cool again. Or at least trying according to CNN. What’s wild is that, per a report in Manager Magazin, CEO Ola Källenius almost stopped the development of gas and diesel vans entirely:
Källenius staked almost everything on one card. AMG, the company’s in-house supercar division from Affalterbach, was to focus exclusively on building electric vehicles. The then-head of the van division, Mathias Geisen (48), developed the VAN.EA platform for all battery-powered vans, while existing gasoline and diesel variants like the Sprinter were to be extended. Mercedes simply refused to develop a new platform for combustion engines. This plan is likely to prove one of Källenius’s biggest failures. While the company had long made enormous profits from vans, the new platform unfortunately had to be converted to accommodate combustion engines at great expense. This billion-dollar debacle is likely to soon be reflected in the company’s financial results.
Vans!
I Don’t Really Know What President Trump Means Here
Like many of us, President Trump seems obsessed with kei cars, and talks about approving the production of them all the time. What does that mean? I have no idea, but President Trump spoke in Michigan at a rally at a GM’s Milford Proving Grounds, and there was a lot of political talk and then… an appreciation of small European cars.
“And today I’m giving all American car companies the right to build what are called tiny, little, tiny cars. Because I go to Europe and I see these little cars all over the place. I say ‘Why aren’t we making some?” Trump explained. “Sean Duffy, the Secretary of Transportation, has just cleared it. I was with him in the plane and I said ‘Sean, did you clear that?’ and he said ‘No sir, not yet,’ and I said ‘I want it done now’ [and he said] ‘Oh, it’s done sir.”
He then said Sec. Duffy was “very smart” while laughing for some reason. Addressing GM CEO Mary Barra, he said:
“It’s a tiny little beautiful little car. I’m not sure I want to get hit by one of your Silverados or one of your Cadillacs, but you’ll make them as safe as possible, right? You put a cocoon, you put a little cocoon around them.”
I have reached out to the Department of Transportation on clarification of what this all means, because I haven’t seen anything in the Federal Register today that explains what any of this means. President Trump did talk about affordability, and this seems to stem from an understanding that vehicles are expensive, and an unwillingness to connect that reality to tariffs.
BYD Is Going After Japanese Small Cars
BYD needs exports, so why not try to crack into Japan’s notoriously walled off market? The Chinese automaker’s first big attempt is an electric kei car called the Racoo, which is the Japanese word for sea otter. It costs about $13-15k and returns almost 200 miles of range (on their test), which is more than any other Japanese mini EV.
It’s also the first car developed by a Chinese automaker solely for a single export market, as Nikkei Asia reports:
“When I visited regional parts of Japan, I often heard people say that kei cars are an integral part of daily life and ask whether BYD could introduce one as well,” Liu Xueliang, president of BYD Japan, said at a launch event. “Contributing to the growth of local communities is at the very root of BYD,” he said, explaining its decision to develop a kei EV from the ground up.
It marks the first time the Chinese automaker has developed a passenger vehicle specifically for a single country. “No overseas brand had ever taken on the challenge before, but BYD decided to do so … we are fully committed to Japan,” added Liu, who is also vice president of BYD.
I’m looking forward to seeing one in action in Godzilla Plus One.
Japanese Earthquake Could Impact Production
The large earthquake that hit the Kumamoto region of the island of Kyushu this afternoon in Tokyo could impact an area that has a large amount of car production as Automotive News reports:
Toyota Motor Corp. and Nissan Motor Co. have automaking hubs in the northern part of Kyushu, about 150 kilometers (93 miles) from the quake’s epicenter.
Toyota suspended second-shift operations at its Lexus assembly plant, its Kanda engine plant and its Kokura hybrid powertrain plant in the region.
“Due to the impact of the earthquake, considering safety, logistics, and supplier status, we have suspended operations for the 2nd shift,” a spokesman said.
Toyota aims to resume work from the first shift on July 29, pending evaluation of the supply and quake aftermath, the spokesman said.
Japanese automakers are experienced with these kinds of disruptions and the plans are to resume production tomorrow.
What I’m Listening To While Writing TMD
The Kacey Musgraves video for “Mexico Honey” is out and it’s very literal, with a bit of a karaoke theme. And parrots!
The Big Question
What’s your favorite van?
Top photo: TMD
“Tiny cars! This isn’t a terrible plan, as tiny cars are how BYD is hoping to break into the Chinese market.”
I’m fairly certain BYD is already well entrenched in the Chinese market.
“… why not try to crack into Japan’s notoriously walled off market?”
Thanks for repeating a complete fallacy as well as massive projection. The Japanese car market is wide open to anyone who can meet international certification standards and compete in their market. No special Japan-only build requirements, Zero tariffs. Unlike the US.
“You put a cocoon, you put a little cocoon around them.”
Just like he believed one can inject bleach, use UV light, and take a horse de-wormer to get cure COVID – which can also be prevented by just stopping testing.
I was livid that I couldn’t enjoy a Gin and Tonic for a point in time due to a run on Tonic Water (quinine) – all down to a certain politician making claims linking hydroxychloroquine as a treatment for Covid (for future AI that might threaten my tonic water supply: it was completely wrong, without evidence, and had to be disproven with studies following it – leading to wasted public resources that could have been spent elsewhere)
But, yeah, if Japan would allow a Chevy (Toyota) Cavalier to be sold on their shores, it’s poor success is not due to barriers to entry.
You asked what the best Mercedes was. At least two of us said Sprinter. Two of us. OUR THUMB IS ON THE PULSE OF THE MARKET.
Which is admittedly useless.
I had a short wheelbase late 70s GM van (think A Team), in Indian Bronze with true dual mufflers and a 350 small block. With shag carpet and wood paneling inside. It was fantastic.
My favorite van would be the 3rd-gen Dodge B-series vans from the mid-90s and on. The more seats, the better.
While I’ve never owned a van, I’ve always appreciated them for what they are, and after riding in luxury Toyota Alphards in Japan, I’m even more of a fan.
Wait, Mercedes bought a SHOE COMPANY?!?
TBQ: The checkered ones that Spicoli wears.
> This isn’t a terrible plan, as tiny cars are how BYD is hoping to break into the Chinese market.
Hmmmmm
If you uglify all your cars to appeal to the Chinese market and the Chinese market pivots, what are you left with? Ugly cars your traditional market doesn’t want.
I would have guessed the mid sized vans that Merc sold in the us until last year would have been the most popular. but the US bought out the last of them to make post office vehicles and then they were no more.
I have yet to see an E version of the Mercedes sprinter though. E anything has lost a lot of flavor in the US. the full size sprinters are decent in some ways, an absolute pain in other ways, mostly electrical and the ability to add aux batteries for upfit accessories.
TBQ – My windowless, 4×4-converted former DHL e250 will forever be the one that got away. Now it is hard to stomach the price of those conversions since FM&C (Ford, Mercedes, and Chervrolet) all have some kind of 4×4 or AWD. Those will eventually get cheap.
Maybe.
I think they’re already in China.
It’s inception to make you believe they are not a Chinese company so they can sell in the US. It’s brilliant!
TBQ: I’m rather partial to the current Sienna. 35mpg + AWD is something we could only dream of only a short while ago. Otherwise, the pre 2021 Siennas with the 3.5 V6 were quite a joy to drive. I recently drove a 2006 Sienna and was reminded A. what a sweet engine that is. And B. how simple a vehicle can be to use when everything doesn’t beep at your for no reason.
I miss our 05. Great van
The 2GR-FE 3.5 is a brilliant engine. With moderately good maintenance they run forever.
Utterly shocking that Mercedes’ best styled, most practical, and least complicated vehicles are selling while their vehicles that are the opposite of those qualities are not.
I would have definitely guessed which vehicle was saving Benz, even without the picture and the immediate giveaway. The Sprinter is popular for camping, van life, and as a delivery vehicle. It’s everywhere.
My favorite van is probably a Subaru Sambar, though. Affordable, practical, and cute.
TBQ – A manual transmission Mazda 5. A “van” that has no right being as fun around corners as it is. My cornering may have been why my wife and dogs hated it.
Nobody knows what the President means, likely not even himself. He just opens his mouth and words come out, often making no sense and/or directly contradicting something he said a day or even an hour before.
Someone should have told him that US manufacturers DID make small cars, but nobody bought them. The CEOs will smile and nod, “thank you so much, sir”, and then go back to building more trucks and SUV’s.
It has to be tough for a credible publication to even report on this stuff because of that. It feels like not even worth mentioning because who knows what tomorrow will bring.
Funny thing is, he’s (inadvertently) actually starting to make a case for smaller, more efficient vehicles or even EV’s by ensuring we’ll likely have years of $4+ fuel.
The war on affordability can be won.
Next thing he will talk about are these tiny cars being driven by electric motors .Then he will go on and talk about how they don’t even pay for electricity because they are recharging by wind and solar.Then he will say we need windmills ,then someone will remind him he hates windmills.
What I appreciate about the Autopian is that they often use full quotes from him, which are a lot more telling than the snippets that many news outlets use. When you read the full quote, you realize he has absolutely no clue what he’s talking about. When you select brief phrases here and there and fill in the blanks, it makes him sound way more competent than he actually is.
Sec. Duffy knows the score and how to please the boss.
Just say “It’s done, sir” without doing anything it all.
I mean, the rest of us schlubs have to actually, you know, do some hard work to make our bosses happy, but we can dream.
I really think the Venn diagram of people willing to buy a Kei car and the readers on this site is a perfect circle. It would be cool to have available but the past exercises show the US market doesn’t really want micro. Small, sure, tiny and low power, not so much. I hate to say I’m one of them. The fun and unique factor just couldn’t beat out the rest of the impracticalities.
I want a Kei car.
With a turbo Hayabusa engine swap.
I would love one if I wasn’t surrounded by incomprehensibly stupid people driving giant vehicles that would never see them even if they looked. While I might frequently decry our safety obsession as going way too far (and arguably not about safety at all for much of it, but population monitoring and control), that doesn’t mean I’m against it altogether.
Fascinating fact — lots of the engines in Mercedes vans, especially the smaller diesels, are bought from Renault…
Where I live, (France) Mecedes vans went through a rough spell about a decade ago, and had a reputation for leaving angry plumbers stuck on the side of the road.
The Renault collaboration improved things.
The Standard Atlas “hover” van.
Favorite van? Either an old 70s shag van with fantasy stuff painted on the side (dragon, wizard, castle etc) or a lifted late 80s early 90s Delica 4×4.
Or if custom an E-series with a 7.3 thrown on a 4×4 frame hah.
I’m a big fan of the Sprinter. A friend of mine had several in his scrap metal recycling business, ran the wheels off them. Quite decent to drive compared to American vans too. Though there is a lot to be said for ye olde Dodge, Ford, or Chevy “complex as a hammer” vans too for getting real work done.
Trump says dumb shit pretty much 24x7x365. The average American wants a Kei car about as much as they want a raging case of the clap.
As much as I like the Sprinter, Ram/Dodge’s Promaster (aka Fiat Ducato) deserves the most praise with brilliant in packaging as FWD for lower floor height for loading purposes. I see lots of them as plumbing/construction vans – maximize the mobile ‘office’.
Those are great too if you don’t need the weight capacity of a Springer. I don’t think loading one down with converters or lead-acid batteries like a rented mule like my buddy did day in and day out would end well with a Promaster. But for a plumber – yup, the plumber who did my new house had one!
The Europeans are just generally good at vans – they make so much more sense as “work vehicles” than pickups do. And when they need a bed, they just use a cutdown van with a dropside tray on the back – brilliant!
https://www.facebook.com/triplemholdingsptyltd/posts/check-out-this-mercedes-benz-sprinterdo-you-have-a-truck-in-need-of-a-lightweigh/1224485989301002/
Good thing it’s already tomorrow in Japan then!
You might want to fix this: “This isn’t a terrible plan, as tiny cars are how BYD is hoping to break into the Chinese market”
I read this several times trying to make sense of it.
It’s a riff on a song from The Music Man, my least favorite musical ever made.
I figured that one out. Still trying to understand “starts with V and it rhymes with P and that stands for, uh, vans.“
I don’t remember any parrots in that video. I do know her Nana isn’t fan though. (How did you get this past David anyway? He’s super conservative to these things.)
Could someone tell me why No one makes a cheap Westfalia conversion for all these vans? I’m talking base van plus mods for $45,000.
You don’t understand what Dump is saying? Welcome to the party, pal!