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Mercedes Profit Slides on Tariffs, China Slump, Restructuring Costs

The carmaker is signaling confidence with a €2 billion buyback alongside an unchanged full‑year outlook.

Overview

  • Q3 net profit fell about 31% to roughly €1.19–1.2 billion, taking nine‑month earnings down by about half to around €3.9 billion, as revenue declined about 7% to €32.1 billion.
  • Adjusted EBIT dropped about 17% to €2.1 billion, while operating profit sank to about €750 million after roughly €1.35 billion in one‑offs, including €876 million tied to personnel cuts.
  • Global vehicle sales in the quarter fell 12% to 525,300 units, with China down about 27%, and U.S. margins compressed by import tariffs that spiked to 27.5% before easing to 15%.
  • Mercedes is executing its 'Next Level Performance' plan targeting about €5 billion in savings by 2027, including voluntary exit offers to roughly 40,000 non‑production employees.
  • Shares rose around 6–8% after results topped expectations, as CEO Ola Källenius said the quarter was in line with guidance, even as industry peers flag headwinds from tariffs, Chinese EV competition, and chip‑supply risks.