Business
Mercedes Reveals 677-Horsepower Electric Performance Sedan
February 17, 2022
February 20, 2025
By Evans Momodu
1 minute read
February 20, 2025 – 10:47 AM UK(GMT)
German automaker news has it that Mercedes-Benz (MBGn.DE) is shifting gears to counter a rough financial road ahead.
Facing fierce competition and plunging profits, the luxury carmaker has launched a bold cost-cutting strategy to revive sales and boost margins.
The company’s car division suffered a 40% earnings drop in 2024, hit hard by sluggish sales in China and Germany. In Europe, demand remains below pre-pandemic levels, while in China, cost-conscious consumers are increasingly choosing homegrown electric vehicles amid economic uncertainty.
Earnings drop: Mercedes-Benz car division profits fell 40.5% in 2024
Tough forecast: The automaker expects significantly lower earnings in 2025
Cost-cutting push: Aims to reduce production costs by 10% by 2027
With 2025 shaping up to be another challenging year, Mercedes-Benz is racing to streamline operations, betting on efficiency to steer back to profitability.
Source: Reuters
