German automaker Mercedes-Benz saw its profit decline by almost 25% in the first quarter of 2024 compared to the same period last year. The main reason for this was lower car sales.
Weak Q1 due to lower sales
- Net profit fell to €2.97 billion.
- Earnings before interest and taxes (EBIT) dropped by 30% to €3.86 billion.
- Revenue declined by 4% to €35.87 billion.
- Mercedes-Benz Cars sales fell by 8% to 462,978 units.
Despite the profit decline, Mercedes-Benz expects sales to increase in the second quarter. The company does not plan to lower car prices, even though it is facing supply chain issues and a transition to new models in the luxury segment.
Car prices won’t fall despite issues
- Mercedes-Benz expects car prices to remain stable.
- The company is facing supply chain problems.
- There is a transition to new models in the luxury segment.
How will the profit decline affect finances?
The profit decline will have a negative impact on Mercedes-Benz’s finances. The company will need to find ways to reduce costs and increase efficiency. It is possible that this will lead to lower investments in new model development and job cuts.
It is important to note that these are just assumptions. The actual impact of the profit decline on Mercedes-Benz’s finances will become clear in the coming months and years.
Sources: TASR news report, Reuters, RTTNews
