Latest news with #NextLevelPerformance
Yahoo
23-02-2025
- Automotive
- Yahoo
Mercedes-Benz Group reports decline in revenue and profit for 2024
Mercedes-Benz Group has reported revenue of €145.6bn ($151.9bn) for full year 2024, marking a 4.5% decrease from the €152.4bn recorded in 2023. Net profit for the year 2024 also saw a decline, reaching €10.4bn from €14.5bn in 2023. In the Q4 2024, the company's revenue declined by 3.8% year-on-year to €38.4bn, while profit attributable to shareholders of Mercedes-Benz Group dropped by 20.3% to €2,484m. In the fourth quarter, Mercedes-Benz Cars sold 520,140 units, up 1.1% compared to the year before, while Mercedes-Benz Vans' sales dropped by 15%, to 105,687 units. In 2024, the firm's free cash flow of the industrial business was reported at €9.2bn, down from €11.3bn in the previous year. Earnings per share (EPS) followed a similar downward trend in 2024, decreasing by 24.3% to €10.19. The Mercedes-Benz Cars division reported an adjusted EBIT of €8.7bn, a decline from €14.3bn in 2023, primarily due to lower sales volumes, particularly in China, negative net pricing, and an unfavourable model mix. Mercedes-Benz Vans recorded an adjusted EBIT of €2.8bn, compared to €3.1bn in 2023 while Mercedes-Benz Mobility, which provides financial services for the group's vehicle divisions, maintained a strong presence with a total portfolio of €138.1bn, up from €135bn in 2023. The company has announced plans to repurchase up to €5bn of its own shares over a 24-month period, subject to renewal of the necessary authorisation at the Annual General Meeting in May 2025. Looking ahead, Mercedes-Benz anticipates group revenue in 2025 to be slightly below the prior-year level, with group EBIT expected to decline significantly. The company's product roadmap includes several key launches starting in 2025, beginning with the CLA model. As part of its strategic plan, known as Next Level Performance, Mercedes-Benz is aiming to enhance revenue quality, improve efficiency across its global production footprint, and optimise cost structures. The company has set a target to reduce production costs by 10% by 2027 through closer collaboration with suppliers and ongoing fixed-cost reductions. Mercedes-Benz also intends to implement a unified technology platform across its portfolio, integrating infotainment and Advanced Driver Assistance Systems (ADAS) to provide a consistent user experience. Mercedes-Benz Group CEO Ola Kaellenius said: '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.' "Mercedes-Benz Group reports decline in revenue and profit for 2024" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
20-02-2025
- Automotive
- Yahoo
Mastering Transformation: Making Mercedes-Benz Leaner, Faster and Stronger
Way forward: Mercedes-Benz readies its biggest ever product and tech launch campaign with dozens of new or refreshed models until 2027. Design language: Mercedes-Benz to introduce a coherent, status-oriented design language across the entire portfolio. Intelligent modularization and cutting-edge tech: Mercedes-Benz Operating System ( lays foundation for all domains, especially infotainment and automated driving functionalities. Electric drive units and batteries designed to be modular and highly scalable. Performance: Comprehensive performance enhancement plan (Next Level Performance) aims to raise the competitiveness and resilience of Mercedes-Benz. STUTTGART, Germany, February 20, 2025--(BUSINESS WIRE)--Mercedes-Benz Group AG (ticker symbol: MBG) delivered solid financial results for 2024 and unveiled its biggest ever product and tech launch program as well as performance enhancement measures designed to deliver exceptional value to customers and shareholders. "As the custodians of this iconic brand we ensure that Mercedes-Benz continues leveraging its full potential. We're launching the company's biggest ever product and tech campaign and a comprehensive performance enhancement program." Ola Kaellenius, Chief Executive Officer of Mercedes-Benz Group AG. Building the most desirable cars A Mercedes-Benz is a Mercedes-Benz – no matter how it's powered. This means: Every Mercedes is extraordinary. Its status derives from exceptional design, advanced technology, superb refinement and craftsmanship, a sublime ride and drivetrain, world class safety systems and outstanding digital solutions – be it a battery-electric vehicle (BEV), a hybrid, or a car with an electrified high-tech combustion engine (ICE). Mercedes-Benz will apply a coherent, status-oriented design across the entire portfolio and customers will primarily decide on a model – and then choose their preferred drive type. The all new CLA, which will be offered as both a BEV and an ICE variant, takes a big step in this direction. And there is more to come. The concept offers drivetrain flexibility in the form of a pure electric car with benchmark range, consumption and charging performance; in addition to a highly efficient ICE variant using small transverse high-tech electrified engines. Even though the designs will be almost identical, in the Core and Top-End Vehicles (TEV) segments, the rear-wheel-drive cars will be based on separate, uncompromised BEV/ICE concepts. Cutting-edge BEV and ICE models can exploit their respective strengths, without sacrificing space, elegance, convenience, or efficiency. Thanks to intelligent modularization, Mercedes can offer best-in-class roominess and perfect proportions while keeping a tight grip on costs and manufacturing flexibility. By focusing on the most promising segments, Mercedes-Benz retains the ambition to defend margins as the BEV share increases. Mercedes-Benz plans to expand and protect the share of Top-End Vehicles (TEV) and aims to leverage the potential of its luxury brands such as G-Class, as the undisputed icon of adventurous luxury; Maybach as the epitome of sophisticated luxury and Mercedes-AMG as the performance luxury brand. The legendary G-Class family will be expanded with a new smaller version. Mercedes-AMG plans to outgrow the performance market, thanks to a heavily refreshed model lineup from 2026 onwards and a strategic evolution of its portfolio, which will include a next-generation, high-tech electrified V8 and dedicated high-performance electric models based on Biggest ever product launch campaign Beginning with the all-new CLA this year, Mercedes-Benz will start the most intense product launch program in its history, including the major upgrade of the S-Class in 2026 as well as a string of launches at Mercedes-AMG. Overall, Mercedes-Benz plans for dozens of new or refreshed models to reach markets until 2027. The CLA will be offered with an electric drivetrain or a 48-volt electrified high-tech four-cylinder engine, paired to an electrified eight-speed dual-clutch transmission. The electric variant sets new standards in its class in terms of range, consumption and charging power, thanks to know-how transferred from the VISION EQXX technology program. The product substance in this class will be elevated, while at the same time, the portfolio complexity of its family will be reduced from seven to four variants. By launching all-new electric GLC and C-Class models, Mercedes-Benz will close a gap in its electric core segment. An all-new fully electric E-Class will round out the picture. The pace of BEV adoption will continue to be determined by market conditions, infrastructure and customer needs. Boosted by new BEV model introductions, the Mercedes-Benz Group AG is targeting an xEV share of more than 30% in 2027. "We will excite our customers with a full rollout of uncompromising cars. They will be an intelligent part of their life. All of them come with a fully integrated tech stack and leverage the latest developments in AI. They will be packed with advanced technologies like the latest ADAS systems and innovative tech features like a new steer-by-wire system. It all starts very soon with our new CLA, our first software-defined vehicle powered by our very own in-house operating system It will be followed by our new electric GLC, which is a turning point in our mid-size segment. This is the all-electric SUV our customers have been waiting for." Markus Schaefer, Member of the Board of Management of Mercedes-Benz Group AG. Chief Technology Officer, Development & Procurement Intelligent scalable modules With the launch of the CLA, all new Mercedes vehicles will run on the proprietary AI-enhanced Mercedes-Benz Operating System ( a chip-to-cloud software operating system which covers infotainment, automated driving, comfort as well as driving & charging. By having full control of all sensors and actuators, Mercedes-Benz will be able to deliver a superior product experience. is scalable to fit every segment and can be tailored to each region. For example, with navigation, Mercedes-Benz will use Google in western markets, AMAP for China and TMAP in Korea. The BEV drivetrain portfolio will make use of highly modular electric drive units and batteries which are scalable for all segments, including cost-effective Lithium-Iron-Phosphate (LFP) and advanced Nickel-Manganese-Cobalt (NMC) batteries, as well as high-performance round cells. For the batteries used in the CLA, the cost per kilowatt hour has been cut by about 30% compared to its predecessor generation. Further improvements in energy density and cost efficiency are being worked on, in addition to advances in cell chemistry. Lithium-Manganese-Oxide (LMO)/NMC blends will lower costs while increasing energy density to NMC levels. The newly developed, flexible Electric Drive Unit 2.0 (EDU 2.0) will offer two and four-wheel options across all segments. To also ensure a comprehensive portfolio of electrified high-tech combustion-engine vehicles, Mercedes-Benz already has a full range of future-proof EU-7 ready engines and transmissions ranging from four to eight cylinders. In selected markets, 12-cylinder engines will continue to be offered. Lead in tech Mercedes-Benz continues to push boundaries with cutting-edge technology, including a new steer-by-wire system and a fully integrated tech stack, which includes a water-cooled supercomputer. With the all-new CLA, Mercedes-Benz will introduce not just but also the MBUX Virtual Assistant, which incorporates multi-agent AI functionalities. Using the latest Large Language Models (LLM) and incorporating conversational as well as behavioral AI, it makes the user experience more proactive and human like. It can even answer follow-up questions in a natural way for up to an hour, thanks to memory. also supports next level automated driving, including Level 2++ point-to-point navigation which handles complex urban traffic. This feature will be available in China and the US with the all-new CLA, and Europe will follow as soon as legislation permits. Speeds for SAE Level 3 conditionally automated driving are increasing, and the goal is to get a 130 km/h system on the road by the end of the decade. Mercedes-Benz became the first international car maker to gain approval for testing SAE Level 4 highly-automated driving in Beijing on designated urban roads and highways. Winning in China The S-Class remains the undisputed market leader in its segment, and Mercedes-Benz continues to lead the segments for vehicles priced 1 million RMB and above. China is already home to Mercedes-Benz's biggest and strongest research and development network outside of Germany. Local facilities in Beijing and Shanghai allow Mercedes-Benz to take full advantage of the local ecosystem and supplier landscape. This enables Mercedes-Benz to combine upholding its high internal standards while innovating at "China speed." Mercedes-Benz is already setting standards in navigation with lane-level navigation and 3D maps. Utilizing the China R&D network will allow Mercedes-Benz to elevate the intelligence of its products while at the same time greatly lowering complexity and cost. Products made for the Chinese market will be locally developed and loaded with China-specific apps and content, including dedicated infotainment and automated driving features. As part of the announced product launch campaign there will be seven models dedicated to China across all segments and drivetrains. Despite a challenging year 2024, the Mercedes-Benz China Joint Venture operations achieved a strong return on sales. Mercedes-Benz plans to optimize the BBAC joint venture together with its partner. A 10% reduction in material costs is targeted through deeper localization of parts in the China supply chain. Variable production costs and fixed costs are set to be reduced as well. Potential adjustments to the dealer network and production footprint are also being evaluated. R&D costs Mercedes-Benz is prioritizing global R&D resources with a laser focus on the customer. The company will continue investing in the Mercedes-Benz Tech Stack to defend and expand its position in software and hardware. The vertical integration of will allow for a continuous, iterative approach to product development with an increased emphasis on software. The use of digital tools also allows Mercedes-Benz to achieve greater levels of efficiency in its use of hardware and test fleets. Investments are expected to reach their peak in 2025 due to the massive product launch plan and will ease from 2026 onwards. The majority of investments for the CLA family of vehicles, the electric GLC and C-Class as well as models will be completed by 2027, with products on the road. Investments into combustion engine technology will remain limited, thanks to a reduction in powertrain complexity and the use of intelligent modularization between BEV and electrified high-tech ICE products. The highly efficient four-cylinder engine for the all-new CLA was developed and designed by Mercedes-Benz and is being industrialized with a partner in China. Next Level Performance: Production: Mercedes-Benz Group is adapting its cost base with a raft of measures. The company plans to cut production costs by 10% until 2027 after using the past years to adjust its nominal production capacity. This, among other factors, resulted in an exit from plants in Hambach (France), Iracemapolis (Brazil) as well as CKD plants in Russia and Indonesia. A powertrain plant in Poland is being transformed into a future production site for Vans and the sale of a Van plant in Argentina is another step towards adapting the company's global production footprint. Global production capacity for passenger cars is planned to be reduced from 2.5 million in 2024 to between 2 - 2.2 million units by 2027, while retaining the flexibility to readjust, as the product launch campaign gains traction. There are no plans to shut down plants in Germany. Production capacity at each German plant is being balanced at an average 300,000 units. A core segment model will be added to the production lineup in Kecskemet (Hungary), where capacity is being added to take advantage of factor costs which are roughly 70% lower than in Germany. Mercedes-Benz will make greater use of digitalization and AI, adopting a 'digital first' approach. Thanks to digital twins, Mercedes-Benz can plan potential moves of models between plants, including ramp up times, and retooling of the plans without having to significantly interrupt real world production. Local for local: By 2027 the share of local-for-local production is planned to be increased from 60% to 70%. An additional Core segment model could be allocated to the United States and a long-wheelbase version of the GLE will be localized in China by mid-2026. Material Costs: Suppliers are engaged in a dialogue with Mercedes-Benz procurement and engineering teams to reduce material costs by challenging specifications and the design of components to identify where cost can be reduced through standardization and technical refinement. One result is earlier and deeper integration of key suppliers in the development process. Material costs will be tackled in close collaboration with suppliers. The BEAT26 program aims to jointly achieve long-term and sustainable changes to cost structures in procurement for both Mercedes-Benz and its partners. Fixed Costs: Mercedes-Benz achieved a 19% reduction in fixed costs between 2019 and 2024, net of inflation. An additional reduction of more than 10% is being targeted over the next three years. To achieve this, the company is constructively discussing measures with its works council. Moreover, opportunities are being evaluated to determine how Mercedes-Benz sales and financial services organizations can work more closely together, to cater to customers across the different touchpoints more efficiently. In addition to selling its own retail business in Germany to experienced dealer groups, the company plans to further reduce management positions and increase the use of digitalization and generative AI to streamline processes. "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." Harald Wilhelm, Chief Financial Officer of Mercedes-Benz Group AG Link to capital market presentation: Pictures of the event will be available here: Further information about Mercedes-Benz Group is available at: and The figures in this document are preliminary and have neither been approved yet by the Supervisory Board nor audited by the external auditor. Further information about Mercedes-Benz Group is available at: and Forward-looking statements This document contains forward-looking statements that reflect our current views about future events. The words "anticipate", "assume", "believe", "estimate", "expect", "intend", "may", "can", "could", "plan", "project", "should" and similar expressions are used to identify forward-looking statements. These statements are subject to many risks and uncertainties, including an adverse development of global economic conditions, in particular a negative change in market conditions in our most important markets; a deterioration of our refinancing possibilities on the credit and financial markets; events of force majeure including natural disasters, pandemics, acts of terrorism, political unrest, armed conflicts, industrial accidents and their effects on our sales, purchasing, production or financial services activities; changes in currency exchange rates, customs and foreign trade provisions; changes in laws, regulations and government policies (or changes in their interpretation), particularly those relating to vehicle emissions, fuel economy and safety or to ESG reporting (environmental, social or governance topics); price increases for fuel, raw materials or energy; disruption of production due to shortages of materials or energy, labour strikes or supplier insolvencies; a shift in consumer preferences towards smaller, lower-margin vehicles; a limited demand for all-electric vehicles; a possible lack of acceptance of our products or services which limits our ability to achieve prices and adequately utilize our production capacities; a decline in resale prices of used vehicles; the effective implementation of cost-reduction and efficiency-optimization measures; the business outlook for companies in which we hold a significant equity interest; the successful implementation of strategic cooperations and joint ventures; the resolution of pending governmental investigations or of investigations requested by governments and the outcome of pending or threatened future legal proceedings; and other risks and uncertainties, some of which are described under the heading "Risk and Opportunity Report" in the current Annual Report or in the current Interim Report. If any of these risks and uncertainties materialises or if the assumptions underlying any of our forward- looking statements prove to be incorrect, the actual results may be materially different from those we express or imply by such statements. We do not intend or assume any obligation to update these forward-looking statements since they are based solely on the circumstances at the date of publication. Mercedes-Benz Group at a glance Mercedes-Benz Group AG is one of the world's most successful automotive companies. With Mercedes-Benz AG, the Group is one of the leading global suppliers of high-end passenger cars and premium vans. Mercedes-Benz Mobility AG specialises in financial and mobility services. The products range from financing, leasing, vehicle subscription, rental and fleet management to insurance, innovative mobility services, digital payment solutions as well as products and services around charging. The company founders, Gottlieb Daimler and Carl Benz, made history by inventing the automobile in 1886. As a pioneer of automotive engineering, Mercedes-Benz sees shaping the future of mobility in a safe and sustainable way as both a motivation and obligation. The company's focus therefore remains on innovative and green technologies as well as on safe and superior vehicles that both captivate and inspire. Mercedes-Benz continues to invest systematically in the development of efficient powertrains and sets the course for an all-electric future. Mercedes-Benz is consistently implementing its strategy to transform itself toward a fully electric and software-driven future. The company's efforts are also focused on the intelligent connectivity of its vehicles, autonomous driving and new mobility concepts as Mercedes-Benz regards it as its aspiration and obligation to live up to its responsibility to society and the environment. Mercedes-Benz sells its vehicles and services in nearly every country of the world and has production facilities in Europe, North and Latin America, Asia and Africa. In addition to Mercedes-Benz, the world's most valuable luxury automotive brand (source: Interbrand study, 10. Oct. 2024), Mercedes-AMG, Mercedes-Maybach as well as the brands of Mercedes-Benz Mobility: Mercedes-Benz Bank, Mercedes-Benz Financial Services and Athlon. The company is listed on the Frankfurt and Stuttgart stock exchanges (ticker symbol MBG). In 2024, the Group had a workforce of around 175,000 and sold around 2.4 million vehicles. Group revenues amounted to €145.8 billion and Group EBIT to €13.7 billion. View source version on Contacts Willem Spelten, +49 151 5862 4395, Edward Taylor, +49 176 3094 1776, Tobias Mueller, +49 160 862 0035, Andrea Berg, +1 917 667 2391,
Yahoo
20-02-2025
- Automotive
- Yahoo
Mastering Transformation: Mercedes-Benz Lays out its Roadmap for Profitable Growth
Cash generation: Solid cash generation with a €9.2 billion free cash flow from the industrial business in 2024. Performance: Comprehensive performance enhancement plan (Next Level Performance) seeks to return Mercedes-Benz Cars to a double-digit adjusted Return on Sales (RoS) margin. Outlook 2025: Group revenue expected slightly below prior-year level, Group EBIT and free cash flow from the industrial business expected significantly below prior-year level. Shareholder returns: Capital allocation framework in place. Dividend of €4.30 per share proposed and new share buyback program for a maximum of up to €5 billion in up to 24 months decided, subject to Annual General Meeting approval to buy back up to 10% of share capital. STUTTGART, Germany, February 20, 2025--(BUSINESS WIRE)--Mercedes-Benz Group AG (ticker symbol: MBG) delivered solid financial results for 2024 and unveiled a multi-year product and performance enhancement plan to strengthen the company's resilience. "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."Ola Kaellenius, Chief Executive Officer of Mercedes-Benz Group AG Mercedes-Benz's product launch program starts in 2025 with the CLA, followed by a major upgrade of the S-Class in 2026, an all-electric GLC and C-Class, as well as a string of BEV and electrified high-tech ICE launches at Mercedes-AMG. Overall, sales are expected to gain traction after dozens of new or refreshed models reach the markets until strengthen its competitiveness and resilience, Mercedes-Benz has launched a comprehensive performance enhancement program – known as Next Level Performance. Through a set of initiatives, Mercedes-Benz Group aims to further leverage growth potential through its direct sales channel, elevate the customer service experience to a new level and to boost revenue quality. In addition, the company will take steps to make its global production footprint more efficient and more flexible. The company plans to cut production costs by 10% until 2027. Material costs will be tackled in close collaboration with suppliers and fixed-cost reductions will continue through to 2027, building on significant progress achieved over the past four years. Technology and design Going forward a coherent design language will be used across the entire portfolio. BEV and electrified high-tech ICE models will exploit their respective strengths, without sacrificing space, elegance, convenience or efficiency. Thanks to intelligent modularisation, Mercedes-Benz will offer a unified tech stack in infotainment and Advanced Driver Assistance Systems (ADAS), a consistent customer experience as well as best-in-class roominess and perfect proportions while keeping a tight grip on costs and manufacturing flexibility, allowing Mercedes-Benz to tailor products to specific markets like China. 2024 results Group earnings before interest and taxes (EBIT) reached €13.6 billion (2023: €19.7 billion). Group revenues came in at €145.6 billion (2023: €152.4 billion). The free cash flow from the industrial business reached €9.2 billion (2023: €11.3 billion) mainly due to a very high cash conversion rate at Cars and Vans. The net liquidity of the industrial business reached €31.4 billion (end of 2023: €31.1 billion) remaining on a similar level as the prior year, demonstrating strong cash generation at work, despite more than €10 billion cashout for dividend payments and share buybacks in 2024. Mercedes-Benz Group FY2024 FY2023 Change24/23 Revenue* 145,594 152,390 -4.5% Earnings before interest and taxes (EBIT)* 13,599 19,660 -30.8% Net profit/loss* 10,409 14,531 -28.4% Free cash flow industrial business (FCF)* 9,152 11,316 -19.1% Earnings per share (EPS) in EUR 10.19 13.46 -24.3% * in millions of € Divisional results The adjusted EBIT at Mercedes-Benz Cars fell to €8.7 billion (2023: €14.3 billion) on lower volumes, particularly in China, negative net pricing and an unfavourable model mix. The adjusted RoS in 2024 was 8.1% (2023: 12.6%). Research and Development costs remained on a high level due to investments for future platforms and technologies, particularly for while investments in PP&E remained at the previous year's level. Mercedes-Benz Cars FY2024 FY2023 Change24/23 Unit Sales 1,983,403 2,044,051 -3.0% - thereof xEV 367,610 401,943 -8.5% - thereof BEV 185,059 240,668 -23.1% Share of xEV in unit sales in % 18.5 19.7 - Revenue* 107,761 112,756 -4.4% Earnings before interest and taxes (EBIT)* 8,460 14,224 -40.5% Adjusted earnings before interest and taxes (EBIT)* 8,677 14,252 -39.1% Adjusted return on sales (RoS) in % 8.1 12.6 -4.5%pts Cash flow before interest and taxes (CFBIT)* 8,963 12,336 -27.3% Adjusted cash conversion rate (CCR) 1.0 0.9 - * in millions of € Adjusted EBIT at Mercedes-Benz Vans reached €2.8 billion (2023: €3.1 billion) and the adjusted RoS remained almost at the previous year's level, at 14.6% (2023: 15.1%). A healthy mix supported by improved product substance partially offset lower overall sales. Furthermore, in the challenging environment, the comprehensive cost initiative further supported profitability. Research and Development costs remained on a high level due to investments into the new, further flexibilized van architecture with two variants: Van Electric Architecture ( for BEV models and Van Combustion Architecture ( for ICE models. Mercedes-Benz Vans FY2024 FY2023 Change24/23 Unit Sales 405,610 447,790 -9.4% - thereof BEV 19,516 22,666 -13.9% Share of BEV in unit sales in % 4.8 5.1 - Revenue* 19,320 20,288 -4.8% Earnings before interest and taxes (EBIT)* 2,932 3,138 -6.6% Adjusted earnings before interest and taxes (EBIT) * 2,825 3,063 -7.8% Adjusted return on sales (RoS) in % 14.6 15.1 -0.5%pts Cash flow before interest and taxes (CFBIT)* 2,705 2,817 -4.0% Adjusted cash conversion rate (CCR) 1.0 1.0 - * in millions of € Mercedes-Benz Mobility remains a strong partner for Mercedes-Benz Cars and Vans. In 2024, Mercedes-Benz Mobility´s total portfolio amounted to €138.1 billion (2023: €135.0 billion) while new business declined to €59.5 billion (2023: €62.0 billion). The adjusted EBIT came in at €1.1 billion (2023: €1.7 billion) and was impacted mainly due to a reduced interest margin resulting from interest rate developments and increased competition in the financial services sector, especially in China. As a result, the adjusted return on equity (RoE) declined to 8.7% (2023: 12.3%). Mercedes-Benz Mobility FY2024 FY2023 Change24/23 Revenue* 25,083 25,571 -1.9% New business* 59,486 62,014 -4.1% Contract volume (December, 31)* 138,095 135,027 +2.3% Earnings before interest and taxes (EBIT)* 1,134 1,302 -12.9% Adjusted earnings before interest and taxes (EBIT) * 1,134 1,695 -33.1% Adjusted return on equity (RoE) in % 8.7 12.3 -3.6%pts * in millions of € Dividend At the Annual General Meeting on May 7, 2025, the Board of Management and the Supervisory Board will propose a dividend of €4.30 per share (2023: €5.30). Share buyback policy Mercedes-Benz has decided to buy back own shares worth up to a maximum €5 billion (not including incidental costs) on the stock exchange over a period of up to 24 months, subject to the renewal of the authorization by the Annual General Meeting in May 2025 to buy back own shares up to a maximum of 10% of the share capital. This buyback is based on and in line with the existing buyback policy, that any future free cash flow from the industrial business, (as available post potential small-scale M&A) generated beyond the approximately 40% dividend payout ratio of Group Net Income, shall be used to fund share buybacks with the purpose of redeeming shares. Outlook The Mercedes-Benz Group expects Group revenue in 2025 to be slightly below the prior-year level. In a market environment that remains challenging, Group EBIT is expected to be significantly below the previous year's level resulting out of divisional guidances. Group free cash flow from the industrial business is seen significantly below the strong level of 2024, due to lower EBIT at Mercedes-Benz Cars and Mercedes-Benz Vans and lower CCR at Mercedes-Benz Vans. Outlook FY 2024 Actuals FY 2025 Guidance Unit Sales Mercedes-Benz Cars 1,983k units Slightly below Mercedes-Benz Vans 406k units Slightly below xEV Share Mercedes-Benz Cars (xEV) 19% 20 to 22% Mercedes-Benz Vans (xEV) 5% 8 to 10% Adjusted* return on sales (RoS) Mercedes-Benz Cars 8.1% 6 to 8% Mercedes-Benz Vans 14.6% 10 to 12% Mercedes-Benz Mobility (RoE) 8.7% 8 to 9% Adjusted cash conversion rate (CCR) Mercedes-Benz Cars 1.0 0.9 to 1.1 Mercedes-Benz Vans 1.0 0.5 to 0.7 Investment in pp&e Mercedes-Benz Cars €3.4 billion Significantly above Mercedes-Benz Vans €0.6 billion Significantly above R&D expenditure Mercedes-Benz Cars €8.7 billion At prior-year level Mercedes-Benz Vans €1.0 billion Significantly above * The adjustments include material adjustments if they lead to significant effects in a reporting period. These material adjustments relate in particular to legal proceedings and related measures, restructuring measures and M&A transactions. Link to press release "Sales figures 2024": Link to capital market presentation on full year 2024: Pictures of the event will be available here: Further information about Mercedes-Benz Group is available at: and The figures in this document are preliminary and have neither been approved yet by the Supervisory Board nor audited by the external auditor. Forward-looking statements This document contains forward-looking statements that reflect our current views about future events. The words "anticipate", "assume", "believe", "estimate", "expect", "intend", "may", "can", "could", "plan", "project", "should" and similar expressions are used to identify forward-looking statements. These statements are subject to many risks and uncertainties, including an adverse development of global economic conditions, in particular a negative change in market conditions in our most important markets; a deterioration of our refinancing possibilities on the credit and financial markets; events of force majeure including natural disasters, pandemics, acts of terrorism, political unrest, armed conflicts, industrial accidents and their effects on our sales, purchasing, production or financial services activities; changes in currency exchange rates, customs and foreign trade provisions; changes in laws, regulations and government policies (or changes in their interpretation), particularly those relating to vehicle emissions, fuel economy and safety or to ESG reporting (environmental, social or governance topics); price increases for fuel, raw materials or energy; disruption of production due to shortages of materials or energy, labour strikes or supplier insolvencies; a shift in consumer preferences towards smaller, lower-margin vehicles; a limited demand for all-electric vehicles; a possible lack of acceptance of our products or services which limits our ability to achieve prices and adequately utilize our production capacities; a decline in resale prices of used vehicles; the effective implementation of cost-reduction and efficiency-optimization measures; the business outlook for companies in which we hold a significant equity interest; the successful implementation of strategic cooperations and joint ventures; the resolution of pending governmental investigations or of investigations requested by governments and the outcome of pending or threatened future legal proceedings; and other risks and uncertainties, some of which are described under the heading "Risk and Opportunity Report" in the current Annual Report or in the current Interim Report. If any of these risks and uncertainties materialises or if the assumptions underlying any of our forward- looking statements prove to be incorrect, the actual results may be materially different from those we express or imply by such statements. We do not intend or assume any obligation to update these forward-looking statements since they are based solely on the circumstances at the date of publication. Mercedes-Benz Group at a glance Mercedes-Benz Group AG is one of the world's most successful automotive companies. With Mercedes-Benz AG, the Group is one of the leading global suppliers of high-end passenger cars and premium vans. Mercedes-Benz Mobility AG specialises in financial and mobility services. The products range from financing, leasing, vehicle subscription, rental and fleet management to insurance, innovative mobility services, digital payment solutions as well as products and services around charging. The company founders, Gottlieb Daimler and Carl Benz, made history by inventing the automobile in 1886. As a pioneer of automotive engineering, Mercedes-Benz sees shaping the future of mobility in a safe and sustainable way as both a motivation and obligation. The company's focus therefore remains on innovative and green technologies as well as on safe and superior vehicles that both captivate and inspire. Mercedes-Benz continues to invest systematically in the development of efficient powertrains and sets the course for an all-electric future. Mercedes-Benz is consistently implementing its strategy to transform itself toward a fully electric and software-driven future. The company's efforts are also focused on the intelligent connectivity of its vehicles, autonomous driving and new mobility concepts as Mercedes-Benz regards it as its aspiration and obligation to live up to its responsibility to society and the environment. Mercedes-Benz sells its vehicles and services in nearly every country of the world and has production facilities in Europe, North and Latin America, Asia and Africa. In addition to Mercedes-Benz, the world's most valuable luxury automotive brand (source: Interbrand study, 10. Oct. 2024), Mercedes-AMG, Mercedes-Maybach as well as the brands of Mercedes-Benz Mobility: Mercedes-Benz Bank, Mercedes-Benz Financial Services and Athlon. The company is listed on the Frankfurt and Stuttgart stock exchanges (ticker symbol MBG). In 2024, the Group had a workforce of around 175,000 and sold around 2.4 million vehicles. Group revenues amounted to €145.8 billion and Group EBIT to €13.7 billion. View source version on Contacts Willem Spelten, +49 151 5862 4395, Edward Taylor, +49 176 3094 1776, Benjamin Kraft, +49 176 3095 7277, Andrea Berg, +1 917 667 2391, Sign in to access your portfolio
