1:13 pm, February 21, 2025
Mercedes-Benz has announces an ‘intense product launch campaign’ that will include more new petrol and diesel vehicles than electric as it hopes to increase margins.
The German carmaker announced on Thursday that it is preparing to for a drop in earnings in 2025 and will refocus on its combustion engine line-up after electric vehicle sales fell last year.
This followed news of its 2024 financial results, with profit down 31% from €19.7bn in 2023 to €13.6bn while revenue was down 4.5% to €145.6bn.
Mercedes will introduce 19 new petrol and diesel models and 17 new battery-electric models by 2027, but it added that most of the internal combustion engine models will feature in the more expensive end of its range.
Reuters reports, CFO of Mercedes-Benz Group Harald Wilhelm said: ‘The strategy of value over volume remains in place – it has not been abandoned.’
However, the group is also be looking to make efficiencies with a 10% cut to production costs by 2027 and 20% by 2030.
This extends a plan made in 2020 aiming to cut production by 20% by 2025.
Wilhelm added: ‘To ensure that the company can weather an even more dynamic geopolitical environment as well as challenging markets, efficiency measures are being intensified across the board.
‘Paired with strong product substance and our product launch plan, Mercedes-Benz is well positioned to recalibrate its operating point and to return to double-digit margins in the near future.’
He also revealed that more production will move to the US and China to protect the company from increased tariffs, with president Trump threatening a 25% tariff on vehicle imports from April.
CEO Ola Kaellenius commented: ‘Mercedes-Benz Group delivered solid results in a very challenging environment thanks to a range of outstanding products and strict cost discipline.
‘To ensure the company’s future competitiveness in an increasingly uncertain world, we are taking steps to make the company leaner, faster and stronger, while readying an intense product launch campaign for multiple new vehicles starting with the all new CLA.’
