Gia Motors News On October 25, German luxury carmaker Mercedes-Benz announced that its revenue in the third quarter of this year was 34.
5 billion euros (approximately 37.
4 billion US dollars), down about 7% year-on-year.
EBITDA Profit fell to 2.
52 billion euros, down 48% year-on-year.
profit margins have fallen to 4.
7%, below its minimum target of 8%, and the lowest level since the company spun off its truck business at the end of 2021.
Mercedes-Benz’s sluggish third-quarter results were mainly due to a decline in sales of the company’s most expensive models, which dealt a blow to its “luxury car first” strategy to boost profits.
Photo source: Mercedes-Benz, in the China market, Mercedes-Benz’s most luxurious models previously accounted for a relatively high proportion of sales, so China was once regarded by Mercedes-Benz as a model that it hopes to replicate in other regions.
However, due to the slowdown in demand in the China automobile market this year, orders for Mercedes-Benz high-end S-Class and Maybach models have been significantly affected.
This forced the company to cut its 2024 sales forecast and cut adjusted profit margins for its automotive division.
, At the same time, due to its huge industrial scale, Mercedes-Benz bears higher structural costs than car companies such as Tesla.
As a result, Mercedes-Benz said it plans to increase cost cutting efforts.
, Harald Wilhelm, chief financial officer of Mercedes-Benz, said: “The results in the third quarter of this year failed to meet our expectations.
We are cautious about the development of the future market and will increase our efforts to comprehensively improve business efficiency and cost improvement.
“, Although Mercedes-Benz promised to improve its cost situation, it did not elaborate on what areas it would cut costs.
Currently, Mercedes-Benz operates multiple factories in Germany, where labor and energy costs are relatively high.
At the same time, Mercedes-Benz is also investing heavily in the development of electrified models in its huge factory network, while producing both electric and fuel-fired vehicles.
Mercedes-Benz’s share price fell as much as 3.
9% in early trading after the earnings report.
So far this year, the stock has fallen about 9%.
, Mercedes-Benz’s third-quarter results were in sharp contrast to Tesla, whose share price posted its largest one-day gain in 11 years after reporting surprisingly strong revenue and margins.
Tesla expects its fourth-quarter deliveries to increase, while Mercedes-Benz said its fourth-quarter sales will be flat.
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