Mercedes-Benz to Shift Focus Amid Profit Decline

Mercedes-Benz is facing significant financial challenges, reporting a 28% drop in net profit to €10.4 billion and a 4.5% decrease in revenue for 2024. The decline is attributed to weakening sales in China and Europe, where competition from domestic EVs and economic uncertainty have affected demand. In response, Mercedes-Benz plans to cut production costs by 10% by 2027 and shift focus back to internal combustion engines (ICEs) to enhance profitability. The company anticipates further declines in earnings and group revenue in 2025 and has initiated a €5 billion share buyback program. Despite these measures, Mercedes-Benz's car division saw a 40% drop in earnings, and the company expects a challenging market environment ahead. The strategic plan includes optimizing cost structures and launching new models like the CLA starting in 2025.