2024-10-25 09:00:08
Automotive
China
Business

Mercedes-Benz Faces Major Profit Decline Amidst China Struggles

Mercedes-Benz, the renowned German automaker, is grappling with a significant downturn in profits and margins during the third quarter. The company's net profit plummeted by nearly 54%, reaching just 1.72 billion euros, while the revenue margin in the passenger car segment fell sharply from 12.4% to 4.7%. This decline is prominently attributed to weakened sales in China, Mercedes-Benz's most crucial market.

The overall revenue decreased by 6.7% to 34.5 billion euros, and the number of vehicles delivered dropped by 3%. The sales of luxury vehicles, which are vital for the company's profitability, also saw a considerable decline, particularly in the electric vehicle segment, where sales plunged by 31%. This situation has raised alarms within the company, with Financial Chief Harald Wilhelm acknowledging the failure to meet their internal expectations.

China's market, pivotal for Mercedes-Benz, poses a substantial challenge, especially with the rise of local competitors like BYD. Despite China's governmental economic stimulus efforts, the automotive sector remains under pressure. The company now plans to enhance efficiency and implement cost-cutting measures to navigate these difficulties.

Industry expert Ferdinand Dudenhöffer highlights Mercedes-Benz's significant "China problem" concerning its electric vehicles. The company's current margin reflects a level similar to Volkswagen's restructuring phase. Looking forward, Mercedes-Benz anticipates a continued sales decline into the fourth quarter, with an expected operating profit reduction by more than 15% in 2024. Amid these challenges, the company remains focused on stabilizing its finances while contending with intense competition in the Chinese market.

AFP
25. Oktober 2024 um 06:31

Mercedes-Benz with strong decline in profit and margin in the third quarter

Economy
Finance
Politics
Mercedes-Benz, the Stuttgart-based automaker, recorded a strong decline in profit and margin in the 3rd quarter; net profit fell by 54%, profit margin fell to 4.7%; sales in China and luxury vehicles collapsed, electric vehicle sales fell by 31%; the number of vehicles delivered declined by 3%; Chief Financial Officer Wilhelm admitted to missing the targets; expert Dudenhöffer sees a "huge China problem" and a level on par with the turnaround mark Volkswagen; revenue fell by 6.7% to 34.5 billion..
focus
25. Oktober 2024 um 07:03

Quarterly figures published - Mercedes-Benz struggles with a drastic drop in profits - China puts automaker under pressure

Politics
Economy
Finance
Mercedes-Benz is struggling with a drastic drop in profits; sales and operating profit have fallen significantly; the China business is causing great concern.
sueddeutsche
25. Oktober 2024 um 06:36

Automakers: Weak China business causes Mercedes profit to plummet

Politics
Economy
Mercedes-Benz, a DAX-listed company, suffered a profit decline of almost 50% to 2.5 billion euros in the 3rd quarter. The return on sales in the core passenger car business fell from 12.4% to just 4.7%. Despite a stimulus package from the Chinese government, the important Chinese automotive market remains a challenge for Mercedes-Benz. The company wants to increase efficiency and reduce costs, but has also lowered its profit target and sales outlook for 2022. While sales figures only declined..
CW

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