2024-10-25 17:55:12
Automotive
Business

Mercedes Faces Profit Decline Amid Market Changes

Mercedes-Benz is grappling with a significant drop in profits and margins, primarily driven by a decline in luxury and electric vehicle sales. Consumers are increasingly opting for car-sharing and public transport, compounded by high new car prices that strain sales.

The company's performance in China has worsened, with a 13% downturn, as local manufacturers intensify competition. As a result, Mercedes has revised its annual forecasts downward twice, indicating that operating profit will be substantially lower than the previous year.

The financial landscape is further complicated by costly production facilities, which may not be fully utilized. Efforts to enhance efficiency and reduce costs are underway, alongside a stable free cash flow that the company plans to allocate for share buybacks.

Meanwhile, Porsche, a subsidiary of Volkswagen, is also experiencing a profit decline due to similar issues in the Chinese market, yet remains hopeful for a strong year-end to meet its revised sales targets. The automotive industry is clearly in a state of transition, with both established brands and newcomers vying for a shrinking market.

Berliner Zeitung
25. Oktober 2024 um 14:25

Mercedes Reports Significant Decline in Profit

Economy
Finance
Technology
Mercedes in structural change: profit and margin collapsed; decline in luxury cars and electric cars; consumers are turning to car-sharing and public transport; high new car prices burden sales; China market down 13%; Chinese manufacturers compete with their own production; annual forecast lowered twice, operating profit significantly below last year; expensive production facilities with uncertain utilization.
Frankfurter Rundschau
25. Oktober 2024 um 15:13

Significant Profit Decline at Mercedes-Benz: Even Analysts are Surprised - Stock Drops Immediately

Economy
Politics
Finance
Mercedes-Benz suffers a significant decline in profits due to weak business in China. The Chief Financial Officer wants to improve costs and efficiency. The operating profit margin in the passenger car business falls to 4.7%. High expenses for electric cars, discounts and sales promotion in China. The group lowers its revenue and sales forecast. Decline in passenger car sales, prices and share of more expensive cars. Solid free cash flow, which is to be used for share buybacks.
tz
25. Oktober 2024 um 15:13

Massive Profit Decline at Mercedes-Benz: Even Analysts Are Surprised – Stock Drops Immediately

Economy
Politics
Despite the profit decline, solid free cash flow thanks to reduced inventories that tie up capital; Mercedes aims to use cash flow for share buybacks.
n-tv.de
25. Oktober 2024 um 06:05

Problems in China - Mercedes suffers a significant drop in profits - n-tv.de

Economy
Politics
Mercedes-Benz is suffering from weak sales in China; profits drop by almost half; Chief Financial Officer Wilhelm announces efficiency improvements and cost reductions; Profit margin falls to only 4.7%.
CW

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