Mercedes-Benz Earnings Decline Amidst China's Luxury Market Struggles

Reported about 1 month ago

Mercedes-Benz is intensifying cost-cutting measures after a significant decline in earnings, attributing the halving of profits in the third quarter to reduced demand and intensifying competition in China. The luxury automaker is resisting engaging in a price war and maintaining its 'value over volume' strategy, despite facing challenges as Chinese consumers pivot towards more affordable electric vehicles. With a notable drop in profitability, Mercedes anticipates slightly lower car sales in 2024 compared to the previous year, whilst addressing concerns over shifting consumer preferences and potential tariffs on Chinese EV imports.

Source: YAHOO

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