Mercedes-Benz forecasts significantly reduced earnings for 2025 amidst ongoing challenges in the automotive market, following a 30% earnings slump in 2024. The carmaker anticipates further declines in profit this year, particularly within its car division, which may see a low return rate of 6-8%. Despite a setback in battery-electric vehicle sales, the company plans to introduce numerous new combustion engine and electric models by 2027 while maintaining a strategy centered on value over volume in its product offerings.
Material costs will be tackled in close collaboration with suppliers and fixed-cost reductions will continue through to 2027, building on significant progress achieved over the past four years.
The strategy of value over volume remains in place - it has not been abandoned, and it was good news for its margin that combustion engine cars were still far outselling electric vehicles.
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