Mercedes-Benz earnings more than halved on $1.2B – Business News
Mercedes-Benz on Thursday stated its 2025 earnings have been more than halved on a huge $1.2 billion hit associated to President Trump’s tariffs – and warned that more challenges are on the best way.
The luxurious German automaker’s full-year working revenue was 5.8 billion euros, or roughly $6.9 billion – a roughly 57% drop from 2024. It largely missed Wall Street expectations of $7.8 billion.
Mercedes blamed the dismal outcomes on steep prices from Trump’s auto tariffs and intense competitors from overseas rivals, particularly Chinese automakers.
Mercedes-Benz Group warned that more challenges are on the best way because it faces a $1.2 billion hit associated to tariff prices. Getty Images
The premium automaker stated it’s planning more cost-cutting measures in 2026, and goals to launch a number of new automobiles in its objective to release 40 new fashions in a three-year period.
“Amid a dynamic market environment, our financial results remained within our guidance, thanks to our sharp focus on efficiency, speed, and flexibility. Now we are all set for 2026,” Ola Kaellenius, chief govt of Mercedes-Benz Group AG, stated in a assertion Thursday.
Mercedes is only one of many European car giants going through a advanced web of points, together with provide chain snags, rising manufacturing prices, tariff pressures and expensive retreats on electric vehicle ambitions.
The company is aiming for a 3% to five% return on vehicle gross sales in 2026 – down from the 5% growth it recorded final 12 months.
It expects revenues to remain roughly flat from $157 billion in 2025, whereas it anticipates group earnings earlier than curiosity and taxes can be “significantly above” the earlier 12 months.
Many overseas automakers reported a hit to earnings in 2025 from steep tariff fees after the Trump administration slapped levies as high as 25% on imported automobiles and auto components.
Mercedes blamed the disappointing outcomes on steep tariff prices and intense competitors from overseas rivals. Getty Images
Ford’s tariff invoice final 12 months was about $2 billion, and it has stated it’s anticipating to incur related fees this 12 months.
General Motors – which reported a $3.1 billion tariff charge in 2025 – is anticipating one other $3 billion to $4 billion hit in 2026, at the same time as it really works to ramp up US vehicle manufacturing.
Nissan has additionally elevated its home manufacturing plans, but it nonetheless expects a roughly $2 billion hit to earnings in 2026.
Ola Kaellenius, chief govt of Mercedes-Benz Group AG, stated the company is “all set for 2026.” AFP through Getty Images
Many of these automakers have lowered their output of electric automobiles, each to prioritize US manufacturing and to account for waning demand after Trump axed a $7,500 federal EV tax credit.
Mercedez-Benz USA has abruptly introduced its electric automobiles back to the US after pulling most of the road off the market final summer season, based on a January report in Autoblog.
Auto giants like Stellantis, Ford and General Motors have revealed billions of {dollars} in fees associated to swift retreats on electric vehicle plans at $26.5 billion, $19.5 billion and $7.6 billion, respectively.
