Latest news with #Kallenius
Forbes
23-04-2025
- Automotive
- Forbes
Mercedes Boss Wants EV Even Playing Field With China, But No 'Crude' Tariffs
Mercedes-Benz CEO Ola Kallenius called tariffs "crude" during the launch of the Vision V concept car ... More at the Shanghai Auto Show today. Photo: Mercedes-Benz AG The CEO of Mercedes-Benz has warned the European Union that tariffs would be a "crude" way to find an equitable competition between European and Chinese EV makers. Mercedes-Benz CEO Ola Kallenius told the Shanghai Auto Show that a solution had to be found that allowed European automakers to compete head-to-head with Chinese-made electric cars and SUVs, but that way should not be with tariffs. Kallenius, who also serves as the President of the European automotive industry lobby group, ACEA, called tariffs the 'crudest instrument' available to negotiators while launching the Vision V luxury van concept. 'We need to seek win wins," Kallenius said. 'A conversation about a level playing field in an open market is always legitimate, but a pure tariff barrier is the crudest instrument you can apply. "We have wished for the EU and negotiators on the Chinese side to come up with an equitable solution and from what I have read and heard, they are in discussions. "History tells us that economies exposed to the full force of competition are the most innovative. That is what we would like." The EU has already flagged its willingness to negotiate with China over its tsunami of automotive brands heading to Europe, even floating ideas like minimum pricing for Chinese EVs instead of tariffs. Kallenius also launched the Mercedes-Benz Vision V during the Shanghai Auto Show today. The largest ... More Mercedes-Benz factory in the world is in Beijing, and it makes more than 80% of its Chinese volume domesticallly. Photo: Mercedes-Benz AG. While the EU has import tariffs on vehicles of 10%, additional tariffs of 35.3% for SAIC, 18.8% for Geely (whose founder owns 9.8% of Mercedes-Benz) and 17% for BYD were introduced last year. The German auto industry and the ACEA have been fiercely opposed to the tariffs on Chinese EVs, which had the potential to rise to 45.3%, partly due to fears of reciprocity from China, where Germany's automakers sell a third of their annual production. Kallenius himself called China: 'Our most important market and crucial for our technical innovations' during his Shanghai show speech. China makes 80% of its Chinese-market cars in China, and its largest factory is in Beijing, while it also develops most of its Chinese vehicles in China. The latest innovative Mercedes-Benz aimed at Chinese production for the Chinese market is the Vision V, which is aimed at bringing Chinese customer around to the European view that vans could represent genuine luxury, as well as limousines and SUVs.
New Straits Times
23-04-2025
- Automotive
- New Straits Times
Mercedes bracing for 'once-in-a-century transformation' in car sector
SHANGHAI: German carmaker Mercedes-Benz is preparing for a "once-in-a-century transformation" set to reshape the automotive market, Mercedes chief executive Ola Kallenius said today, German Press Agency (dpa) reported. "What is happening at the moment is a once-in-a-century transformation," Kallenius said at the Auto Shanghai 2025 trade show. This transformation was mainly driven by technology – digitalisation, zero-emissions targets, and automated driving, Kallenius said. The Mercedes chief executive said the company is investing more in technology, innovation, products, and tools than ever to keep up. On the eve of the Shanghai motor show, Mercedes unveiled a long-wheelbase version of its CLA electric car designed for the Chinese market with a range of more than 860 kilometres – a launch described by Kallenius as the largest product offensive in the next three years. Efficiency is crucial in this "once-in-a-century situation," in which so much capital is being freed up, Kallenius said. The Mercedes boss noted that the Chinese market is incredibly competitive, while consumers were more hesitant over the past two years. He said he expects consolidation among the numerous manufacturers on the Chinese market within the next five to 10 years. Like many German carmakers, Mercedes has been struggling recently amid competition from Chinese manufacturers, reporting an annual sales slowdown of 7 per cent for the first quarter. Despite a 10 per cent annual decline in first quarter sales in China, the market still accounted for more than one in three car sales for the firm. Mercedes's group profit fell by over 28 per cent in 2024 compared to the previous year, amounting to €10.4 billion (RM52 billion). Revenue decreased by 4.5 per cent to €145.6 billion. This year, the carmaker expects even stronger headwinds and lower profits. A slight decline in passenger car sales is also anticipated. In 2024, sales amounted to 1.98 million units. – BERNAMA-dpa
Gulf Insider
21-02-2025
- Automotive
- Gulf Insider
Mercedes Slides On Profit Plunge, Weak Car Guidance
Mercedes shares declined in Germany on Thursday after the struggling automaker reported a nearly one-third drop in 2024 profits, pressured by softening demand in China and sluggish electric vehicle sales. Analysts at Bernstein characterized the 2025 outlook for passenger cars as 'predictably weak.' Here's a snapshot of the 2024 fiscal year financial results. The focus is on deteriorating EBIT margin (courtesy of Bloomberg): Ebit EU13.60 billion, -31% y/y Dividend per share EU4.30 vs. EU5.30 y/y, estimate EU4.32 Profit EU10.41 billion, -28% y/y, estimate EU9.87 billion Sales EU145.59 billion, -4.5% y/y, estimate EU145.85 billion Industrial free cash flow EU9.15 billion, estimate EU8.49 billion Vans adjusted return on sales 14.6% vs. 15.1% y/y, estimate 14.8% Vans adjusted Ebit EU2.83 billion, estimate EU2.87 billion Mercedes announced plans to slash 10% of production costs through 2027 and provided a dismal outlook for this year. It expects lower sales and guided profit margins lower than Wall Street's expectations… 2025 Forecast: Sees Cars adjusted return on sales 6% to 8%, estimate 7.91% (Bloomberg Consensus) Sees Vans adjusted return on sales 10% to 12%, estimate 12.8% 'To ensure the company's future competitiveness in an increasingly uncertain world, we are taking steps to make the company leaner, faster and stronger,' CEO Ola Kallenius wrote in a statement. With CEO Kallenius at the helm, Mercedes has prioritized producing higher-end vehicles while shifting away from entry-level models. There was a time—many years ago—when the automaker focused on building cars for executives. However, weak demand for Maybachs and G-Wagons in China and other markets has pressured this strategy. Kallenius expects margins margins upwards of 10% by 2027. Like many others in Europe, automakers have been pressured by weakening global demand, a dismal economic environment in Germany, and Chinese competitors such as BYD. At the same time, trade tensions with the US are another headwind for EU automakers. Click here to read more Also read: Kuwait To Impound Noisy Cars To Curb Reckless Driving
