Definitely getting W212 vibes more I see it
Any summary in English
Economic downturn: New setback for Mercedes: Profit collapses
Tariffs, slump in sales, job cuts: Why Mercedes has to tighten its belt despite billions in sales – and what's behind the numbers.
As of today, 7:17 a.m.
Mercedes-Benz's profit fell by half in the first nine months. Group profit fell by 50.3 percent year-on-year, from €7.80 billion to €3.87 billion, the Stuttgart-based automaker announced. The Swabian company cited tariffs, lower sales figures, and expenses for efficiency measures as reasons for this.
CEO Ola Källenius said the quarterly results were in line with the full-year forecast. Group profit fell by almost 31 percent in the third quarter compared to the same period last year, from €1.71 billion to €1.19 billion. Sales fell by 6.9 percent to €32.14 billion.
Staff Reductions in Germany
In order to increase profitability again, the Board of Management announced a cost-cutting program in February: Production costs are to be reduced by ten percent by 2027, as are fixed costs. Material costs are also to be improved. Mercedes agreed on a package with the General Works Council, including a severance package for employees in indirect areas. According to management, the cost-cutting program amounts to approximately €5 billion compared to previous internal plans.
The automaker's adjusted earnings before interest and taxes (EBIT) amounted to €2 billion in the third quarter, compared to €2.5 billion in the same period last year. The manufacturer further announced that Group EBIT was adjusted for special items totaling €1.34 billion. A large portion of this – €876 million – was attributable to staff reductions in Germany and cost-cutting measures abroad. The number of people leaving the company in Germany was not disclosed.
Another sales decline
Weak business in China and the USA resulted in another sales decline for Mercedes-Benz. From July to September, the automaker sold 525,300 cars and vans to dealers – twelve percent fewer than in the same period last year.
For the first nine months of the year, Mercedes's car and van sales fell by nine percent to around 1.6 million vehicles. In 2024, the Swabian company's sales had already fallen by four percent to just under 2.4 million due to the crisis in the auto industry.