Mercedes-Benz has lowered its profit forecast due to weakening demand in China, a crucial market for the luxury automaker. CEO Ola Källenius noted a cautious attitude among Chinese customers, influenced by the country's real estate crisis.
CFO Harald Wilhelm anticipates a significant drop in sales of high-end models like the S-Class, Maybach, and AMG. The company now expects an operating margin of just 7.5-8.5% in its passenger car business.
Industry expert Ferdinand Dudenhöffer emphasized that German automakers face a major challenge in China, where new energy vehicles account for more than 50% of sales. Mercedes' stock has also taken a hit, dropping to its lowest level in two years.
The company is now preparing for a challenging financial outlook in 2024, with anticipated declines in earnings and free cash flow.
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