Mercedes-Benz’s profits fell by half in the first nine months. The Stuttgart-based car manufacturer announced that consolidated earnings fell by 50.3 percent from 7.80 billion euros to 3.87 billion euros compared to the same period last year. The Swabians cited customs duties, lower sales figures and expenses for efficiency measures as reasons for this. CEO Ola Källenius said that the quarterly results were in line with the forecast for the full year. Group earnings fell by almost 31 percent in the third quarter compared to the same period last year, from 1.71 billion euros to 1.19 billion euros. Sales fell by 6.9 percent to 32.14 billion euros. In order to increase profitability again, the board of directors announced a savings program in February: production costs should fall by ten percent by 2027, as should fixed costs. Material costs should also be improved. Mercedes agreed with the general works council on a package with a severance payment program for employees in indirect areas. According to management, the savings program has a volume of around 5 billion euros compared to previous internal planning. Weak business in China and the USA The car manufacturer’s adjusted earnings before interest and taxes (EBIT) amounted to 2 billion euros in the third quarter after 2.5 billion euros in the same period last year. The manufacturer also announced that group EBIT was adjusted for special effects totaling 1.34 billion euros. A large part of this – namely 876 million euros – is attributable to staff cuts in Germany and savings efforts abroad. It was not reported how many people in Germany left the company. Weak business in China and the USA had once again caused Mercedes-Benz to lose sales. From July to September, the car manufacturer sold 525,300 cars and vans to dealers – twelve percent less than in the same period last year.More on the topicIn the first nine months of the year, Mercedes now has a total decrease of nine percent for cars and vans to around 1.6 million vehicles on its books. In 2024, the Swabians’ sales had already fallen by four percent to just under 2.4 million due to the crisis in the auto industry.
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