Mercedes-Benz recently held its annual North American dealership meeting, where it was revealed how the German brand is going to stick it to Tesla. Mercedes will target two high-volume segments with an all-electric CLA sedan and a new GLC electric crossover.

"We are in the middle of a transformation," Mercedes-Benz USA CEO Dimitris Psillakis said in an interview with Automotive News. "We showed how products and technology support the strategy."

The CLA will be responsible for luring first-time buyers to the brand, while the GLC will compete in the same crossover segment as the Tesla Model Y.

It's not the first electric GLC, however. The EQC was Merc's first mass-produced EV but was never sold in the USA. It was meant to come stateside but was canned because of slow sales before reaching our shores.

The fact that Mercedes is referring to these vehicles by their old names and not something EQ-derived suggests that the rumors about Merc's naming structure returning to normal are true.

According to sources who attended the dealership meeting, the electric CLA is slightly bigger than the ICE model and should be able to do 400 miles between charges. If true, the CLA will definitely be on the list of EVs with the best range. The GLC will have around 300 miles of range, which is pretty much the least you can get away with these days. Still, it is about 50 miles more than axed EQC SUV.

Both cars are expected to arrive next year, aligning with the timeline Mercedes set for its new naming strategy. All of the above matches what we know about the Mercedes-Benz CLA successor.

On the commercial side, Mercedes will bring an electrified Sprinter to the USA. A premium midsize passenger van and a host of electric RVs will join it. A large cargo van with solar panels on the roof will arrive in 2025, boasting a 275-mile range.

The dealer meeting also gave Mercedes dealers some hope for the future. Mercedes' Dealer Board Chairman, Joseph Agresta, revealed that dealers could expect a steady stream of combustion and electric models. While the German brand is dedicated to going electric, it also recognizes the need for combustion cars.

"There's still a commitment to the ICE vehicles," said Agresta. "The ICE vehicles are going to support profitability and volume for some period of time." Supply is also expected to increase, increasing sales by between 5% and 10%.

Mercedes' sales and marketing chief, Britta Seeger, revealed that subscription services are here to stay. Apps and subscriptions will remain a steady source of income, which should be no surprise as Mercedes made more than a billion from subs in 2022 alone. That figure is expected to climb this year thanks to Mercedes now selling horsepower increases via its online store.

The electric roll-out plan is 40% new vehicle sales by 2026 and 70% by 2030.