Mercedes-Benz Reports Sharp Profit Decline and Unveils Cost-Cutting Plan

The automaker cites weak sales in China and outlines a strategy to reduce costs and revamp its product lineup by 2027.

Mercedes-Benz's 2024 net profit dropped by 28% to €10.4 billion, with revenue declining 4.5% to €145.6 billion, primarily due to weak performance in the Chinese market.
The company announced a cost-cutting initiative aiming to reduce production costs and fixed expenses by 10% by 2027, alongside a restructuring of global manufacturing operations.
Global production capacity will be scaled back from 2.5 million vehicles annually to between 2 and 2.2 million by 2027, with no planned plant closures in Germany.
Mercedes plans to launch a major product overhaul, starting with the new CLA model in 2025, in an effort to boost profitability and regain market share.
The automaker forecasts continued challenges in 2025, with lower vehicle sales, reduced profit margins, and a further decline in earnings.