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Mercedes Profit Slumps as Volkswagen Posts Quarterly Loss in Tariff- and China-Driven Hit

Rising U.S. duties plus a China sales slump are eroding margins across Europe's premium auto sector.

Overview

  • Mercedes reported third-quarter EBIT of €750 million, down about 70% year on year, with net profit falling 30.8% to €1.19 billion.
  • Adjusted EBIT was €2.1 billion, a 17% decline after €1.3 billion in one-off items tied largely to restructuring, including €876 million booked in Q3.
  • Despite the downturn, Mercedes kept its full-year guidance and is advancing efficiency measures targeting €5 billion in savings by 2027.
  • Volkswagen posted a €1.07 billion quarterly loss and cited U.S. tariffs plus Porsche-related write-downs and product strategy changes as major drags.
  • Trade measures include a 15% duty on EU car exports to the U.S. and 25% parts duties, while Mercedes’ China sales volumes fell 27% in the quarter.