< IMG Loading = "Lazy" SRSC = "/Sites/Default/Files/Styles/Medium/Public/2025-02/Unsplash%20%2833%29.jpeg ? Itok = LFLXYYMV" Width = "1300" Height = "731" alt = "Mercedes" class = "Lazyload IMG-Fluid Image-Style-Max-1300x1300 "SRC ="/Sites/Default/Files/Styles/Max_1300x1300/Public/2025-02/Unsplash%20%2833%29.jpeg ? Itok = _cn_jg "/62 ~ Unsplash < P > The German manufacturer of Mercedes-Benz cars saw its profit collapse by almost a third in 2024, taken in noise between the drop in its luxury car sales, its decline in China and A drastic drop in demand for electricity.

< P > Faced with this storm, it provides for a new contraction of Its profitability in 2025 and put on a savings plan to straighten the bar.

< P >Its net profit reached 10.41 billion euros in 2024, according to a press release published Thursday, a dive of 28.4% over a year, illustrating the stagnation of German industry, pillar of the first economy European, which suffers mainly from the price of energy, gas and electricity.

< P > The year 2024 was marked By falling from delivery of vehicles, 4%, which had an impact on turnover, down 4.5% to 145.6 billion euros.

< P > Luxury cars of the brand, which allow you to make the best margins, have been less successful (-14%), while Mercedes had however refocused in recent years on its vehicles high -end.

< P >This strategy led to “excessive dependence” of Mercedes to sales of high -end products, according to a note of analysts of the Deutsche Bank published in late January, which underlines an “excessive additional cost” of its models compared to competition .

< P > Consequently, Mercedes gave a margin of sales profitability of only 8.1% in 2024. This ratio continues to deteriorate after reaching 14.6% in 2022 then 12.6% in 2023.

< p > and this profitability should still shrink in 2025 , to a ratio expected between 6 and 8%, according to the press release, which provides for a “significant” drop in its operating profit for the year in Cours.

< P >< Strong > – Speaking of the electric –

< P > in China, where the brand makes a third of its sales, its deliveries fell by 7%. Mercedes-Benz faces competition from local brands that are better placed such as Byd, who took advantage of an explosion of its global deliveries in 2024 (+41%).

< P >Mercedes-Benz also suffers from the breathlessness of sales of electric cars, especially in Germany where demand dropped in 2024 where the market returns to reason. Its global deliveries of 100% electric vehicles have plummeted by 23%, at only 185,000 units, or less than half of the electrical sales of the competitor BMW.

< P > Faced with these difficulties , the group has recently revised down its ambition to sell only fully electric vehicles from 2030, five years before the ban provided by The European Union.

< P > In this context, its boss, Ola Källenius, at the head of the European lobby of manufacturers (ACEA), called the EU in January renouncing fines targeting manufacturers who do not meet the objectives of reducing CO2 emissions in 2025.

< P >< Strong >– Austerity program –

< P > The group announced last November an austerity program, declaring to save “several billion D 'euros per year “.

< P > The press release adds that the group now plans to reduce its Production costs of 10% by 2027, to restore “a two -digit profitability margin”, without specifying whether it is considering job cuts.

< P > Its competitor Volkswagen already announced in December the abolition of 35,000 jobs in Germany and the relocation of the production of its iconic model, the Golf, in Mexico.

< P > The situation of Mercedes-Benz, however “stabilized” in the last quarter, explains to AFP Ferdinand Dudenhöffer, expert in the automotive sector in Germany.

< P >From October to December, the group released a net share of the group of 2.48 billion euros, down 20.3%, but its world car deliveries left upwards (+1%), For the first time of the year, carried by a recovery in China (+3%).

< P > The brand counts on its new electrical model, the CLA coupé sedan, expected for spring, to relaunch sales in this sector.

< p > in the United States, the rebound in thermal vehicle sales at the expense of the electric electric could also play in favor of Mercedes-Benz, estimates M. Dudenhöffer.

< p > however the German manufacturers fear the increase in customs duties promised by Donald Trump on European imports, which would affect their sales.

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Natasha Kumar

By Natasha Kumar

Natasha Kumar has been a reporter on the news desk since 2018. Before that she wrote about young adolescence and family dynamics for Styles and was the legal affairs correspondent for the Metro desk. Before joining The Times Hub, Natasha Kumar worked as a staff writer at the Village Voice and a freelancer for Newsday, The Wall Street Journal, GQ and Mirabella. To get in touch, contact me through my natasha@thetimeshub.in 1-800-268-7116