Overview

• Mercedes will remove the term 'luxury' from its strategic framing to present a broader product lineup across segments.
• It reported a 55.8% decline in first-half 2025 profit to €2.7 billion and margins near 5.3%, down from previous peaks near 15%.
• CEO Ola Källenius pointed to US tariff actions, darwinistic competition in China and a slower-than-expected EV transition as key pressures on the business.
• The automaker abandoned its electric-only timetable and plans to invest in both BEV and internal-combustion models, targeting about 16 of each for a major 2026–27 model offensive.
• Mercedes reaffirmed its 'margin over volume' credo, agreed to cut roughly 100,000 units of annual output in Germany and outlined cost and production adjustments to stabilize results.