Mercedes Pledges Cost Cuts After China Slump Hits Margin
- Company’s automaking margin drops well below 8% target
- Earnings hurt by weaker demand for top-end cars in China
Mercedes’ third quarter revenue was €34.52 billion ($37.4 billion), down around 7% from the same period last year.
Photographer: Wolfram Schroll/BloombergThis article is for subscribers only.
Mercedes-Benz Group AG plans to step up cost reductions after fierce competition and weaker demand in China hit the luxury-car maker’s profits.
The company’s key gauge of profitability slid to 4.7% in the third quarter, undershooting its minimum target of 8% and the lowest level since the carmaker split from its truck business in late 2021. The decline comes after sales of the automaker’s most expensive models fell during the period, dealing a blow to a luxury-first strategy meant to deliver higher profits.