Mercedes-Benz Posts €1.19 Billion Q3 Loss Amid China Sales Slump, US Tariffs
Mercedes-Benz Group, led by Chairman of the Board of Management and CEO Ola Källenius, has reported a significant drop in net profit for the third quarter. The decline was primarily attributed to weak sales in China and US tariffs on the stock market today. Despite meeting full-year guidance, the company anticipates a challenging market environment ahead.
The luxury carmaker's net profit plummeted by 30.8% to €1.19 billion (RM5.8 billion) in the third quarter. This downturn was largely driven by sluggish sales in the Chinese market and the impact of US tariffs on the company's operations.
In response to the Chinese market's slowdown, Mercedes-Benz is collaborating with Chinese self-driving software firm Momenta. The partnership aims to make Mercedes-Benz cars more competitive in the world's largest auto market. However, the company acknowledges that turning around the Chinese market will be a multi-year process.
Mercedes-Benz Group's third-quarter results, although down, aligned with the company's full-year expectations. As the company continues its transformation under Källenius' leadership, focusing on electrification, software, and new competitors, it remains prepared to navigate the anticipated challenges in the stock market today.
