Profit slump at Mercedes-Benz: Analysis and expert opinions

Heavy Losses Mercedes-Benz Reports a Profit Slump of over 50 Percent

2025-08-05 Source: dpa | Translated by AI 2 min Reading Time

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Profit at Mercedes-Benz plummeted by more than half in the first half of the year, as newly revealed. Will the savings package work?

The Stuttgart-based luxury car manufacturer Mercedes-Benz reveals that its profit has dropped by over 50 percent. A savings program is expected to address the issue in the coming years ...(Image: Mercedes-Benz) — The Stuttgart-based luxury car manufacturer Mercedes-Benz reveals that its profit has dropped by over 50 percent. A savings program is expected to address the issue in the coming years ...
(Image: Mercedes-Benz)

The group result at Mercedes-Benz plummeted by 55.8 percent compared to the same period last year (from around 6.1 billion euros to around 2.7 billion, approx. 7 billion USD to around 3.1 billion USD), as the automaker now has to report. The Stuttgart-based company cited reasons such as tariffs, lower sales figures, and expenses for efficiency measures. Looking at the current fiscal year, Mercedes now expects group revenue to be significantly below the previous year's level. The adjusted profit margin in the passenger car division is expected to be only between four and six percent in 2025. In the already weak previous year, it amounted to 8.1 percent. Sales are also expected to be significantly lower.

Mercedes-Benz Revenue Shrinks

As for the revenue of the premium vehicle manufacturer, it fell by 8.6 percent in the first half of the year (from 72.6 billion euros to around 66.4 billion euros, approx. 83.8 billion USD to around 76.6 billion USD). Operating profit (EBIT) declined by around 55 percent (from 7.9 billion euros to approximately 3.6 billion euros, approx. 9.1 billion USD to 4.2 billion USD). However, Mercedes-Benz had already suffered a significant profit slump in the previous fiscal year. This was mainly due to poorly performing business in China. In 2024, group profit dropped by a good 28 percent year-on-year to 10.4 billion euros (approx. 12 billion USD). Revenue for the entire year fell by 4.5 percent to 145.6 billion euros (approx. 168 billion USD). Earnings before interest and taxes dropped by almost a third to 13.6 billion euros (approx. 16 USD).

This is the Mercedes-Benz Savings Program

To increase profitability and sales in the coming years, the board had, as is well known, announced a cost-saving program in February. Once implemented, production costs are to be reduced by around ten percent compared to the current level by 2027. Additionally, material costs are to be optimized. Fixed costs are also set to decrease by another ten percent by 2027. The company reached an agreement with the general works council on a comprehensive package of measures, which also includes a severance program for employees in indirect areas—those not in production.

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Date: 08.12.2025

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