Car industry Mercedes profit collapses
Profits at Mercedes-Benz fell by half in the first nine months of the year. The reasons for this included customs duties, lower sales figures and costs for efficiency measures.
29.10.2025, 07:36
SDA
The Stuttgart-based car manufacturer announced on Wednesday that Group profit fell by 50.3 percent to 3.87 billion euros between January and September compared to the same period last year. Group CEO Ola Källenius said that the quarterly results were in line with the forecast for the year as a whole.
Group earnings in the third quarter fell by almost 31 percent compared to the same period last year, from 1.71 billion euros to 1.19 billion euros. Turnover fell by 6.9 percent to 32.14 billion euros.
Staff cuts in Germany
In order to increase profitability again, the management announced a savings program in February: production costs are to be reduced by ten percent by 2027, as are fixed costs. Material costs are also to be improved.
Mercedes agreed a package with the General Works Council that includes a redundancy program for employees in indirect areas. According to the management, the savings program has a scope of around 5 billion euros compared to previous internal plans.
The car manufacturer's adjusted earnings before interest and taxes (EBIT) amounted to 2 billion euros in the third quarter after 2.5 billion euros in the same period of the previous year. The manufacturer also announced that Group EBIT had been adjusted for special effects totaling 1.34 billion euros.
A large part of this - namely 876 million euros - was due to staff reductions in Germany and cost-cutting efforts abroad. The number of people leaving the company in Germany was not disclosed.
