Automaker Mercedes-Benz's profit in the third quarter sharply fell by 31% compared to the same period in 2024. Despite significant reasons affecting current revenue, including a drop in sales in China, the German concern has not yet revised its annual financial forecast.
This is reported by UNN with reference to Euronews and Merkur.
Details
Mercedes-Benz acknowledged a significant decrease in profit for Q3. The German automaker's profit was down 31% compared to the results of Q3 2024.
In the third quarter, net profit decreased by almost 31 percent to 1.19 billion euros, while revenue fell by 6.9 percent to 32.14 billion euros
Among the reasons for the sharp drop in profit are weak sales of Mercedes-Benz products in China and the impact of tariffs on deliveries to the USA.
Like other European automakers, Mercedes faces increased tariffs on shipments to the US
Also, weak demand in the Chinese market is putting pressure on margins.
Among the details regarding Mercedes-Benz's financial performance, it is noted that operating profit, which describes how much the company earns from its core business, fell to 750 million euros, or by 70%.
At the same time, it is reported that Mercedes-Benz maintained its annual forecast and is not revising previously approved targets.
The Q3 results are in line with our full-year forecast. Our biggest product and technology launch is on track… We remain focused on improving the customer experience and increasing efficiency across the company
Mercedes-Benz continues its cost-cutting program. The Board of Directors announced a comprehensive cost-cutting program in February 2025.
Production and fixed costs are to be reduced by ten percent by 2027. Mercedes also plans to improve material costs.
The total cost-cutting measures amount to approximately 5 billion euros compared to previous internal plans.
Recall
In the summer, cars and auto parts from the EU faced a 27.5% tariff on exports to the US. At the same time, the US and the EU concluded a trade agreement that provided for a reduction of US tariffs on almost all European goods to 15%.
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