November 24, 2024 – According to a report by Handelsblatt on Thursday, a spokesperson for Mercedes-Benz has announced plans to cut costs by billions of euros annually in the coming years.
The spokesperson, as reported, did not elaborate on the specific measures to be taken for cost reduction and remained silent on the possibility of layoffs.
Financial reports indicate that Mercedes-Benz’s third-quarter revenue stood at 34.528 billion euros, marking a decrease of 6.7% compared to the same period last year. Its earnings before interest and taxes amounted to 2.517 billion euros, a significant drop of 48%. Net profit for the quarter was 1.719 billion euros, down 53.8% from the previous year.
In the first three quarters of the year, Mercedes-Benz sold a total of 1.4633 million vehicles worldwide, representing a 4% decline year-on-year. While its third-quarter sales reached 503,600 units, showing a marginal decrease of just 1%, its high-end models, often considered the “profit cows,” saw a steeper decline of 12% to 61,800 vehicles. This figure is notably higher than the 4% and 7% year-on-year drops observed in its core and entry-level models, respectively.
