Mercedes-Benz reported a significant decline in its third-quarter profits, with a 64% drop in earnings in its core car division due to reduced demand from the Chinese market and increased competition from cheaper Chinese-made electric vehicles. This drop was exacerbated by the company's profitability gauge falling to 4.7%, well below the expected 8%, leading to a push for cost-cutting measures. The automaker's revenue also fell, with Mercedes-Benz's car and van sales both decreasing compared to the previous year. The declining sales and earnings have been attributed to economic uncertainties in China and the impact of new tariffs on Chinese EVs imposed by the European Union. Mercedes-Benz plans to focus on cost improvements and anticipates that full-year sales will be slightly lower than last year, with a continued impact on profit margins.