Mercedes lowers profit expectations, cites US tariffs, Chinese EV competition
Mercedes-Benz just lowered its profit expectations for the year, blaming tough US tariffs and fierce competition from Chinese electric car brands.
The company now expects slimmer margins—between 4% and 6%, instead of at least 6%—as the global car market gets trickier.
Revenue will fall well below last year's numbers
Revenue is set to fall well below 2024's numbers, thanks to a 9% drop in car sales and shrinking profits.
High US tariffs on European cars (peaking at 27.5%, now down to 15%) have made things even tougher.
Mercedes's premium models are struggling to compete in China
In China, local EV makers like BYD are undercutting prices, making it hard for Mercedes's premium models to compete.
On top of that, Alabama-built SUVs faced sky-high import taxes—over 100% early last quarter, now eased a bit after a trade truce.
Mercedes is doubling down on cost-cutting and new tech investments
Mercedes isn't giving up—they're doubling down on cutting costs, getting more efficient, and investing in new tech and models.
It's all about staying relevant while the auto world keeps shifting fast.
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