Slump in profits at Mercedes-Benz. (Archive image) Photo: Marijan Murat/dpa
Stuttgart. Mercedes-Benz’s profits fell by almost half last year. Compared to the previous year, consolidated earnings in 2025 fell by around 49 percent from 10.4 billion euros to 5.3 billion euros, the Stuttgart car maker announced.
Tariffs, negative exchange rate effects and intense competition in China had a negative impact on results. However, cost savings of more than 3.5 billion euros in the passenger car division would have offset some of the headwind.
Sales fell by nine percent to 132.2 billion euros. Operating earnings before interest and taxes fell by 57 percent to 5.82 billion euros.
The financial results were in line with the forecasts and were supported “by a clear focus on efficiency, speed and flexibility,” said Mercedes boss Ola Källenius, according to the statement. “We are ready for 2026,” said Källenius. With a clear plan and a very competitive product portfolio, Mercedes is consistently driving forward the transformation.
Fewer cars sold
In total, Mercedes sold around 2,160,000 cars and vans last year. Just over 1.8 million cars were sold, a decrease of nine percent compared to 2024. In China the decline was particularly significant at 19 percent. China is still the most important country for Mercedes. The Swabians will sell almost a third of all cars there in 2025.
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The company had already reacted to the tense situation a year ago and announced an austerity program. In 2024, the consolidated result had already fallen significantly compared to the previous year. Sales and sales were also already declining at that time.
Savings program is intended to boost profitability
The savings program is intended to help you become more profitable again. Accordingly, production costs should fall by ten percent by 2027 compared to back then. In addition, material costs would be optimized. Fixed costs are also expected to fall by a further ten percent by 2027. A severance pay program for employees in indirect areas, i.e. not in production, should also help.