Latest news with #OlaKaellenius
Toronto Sun
a day ago
- Automotive
- Toronto Sun
Mercedes-Benz profit plunges on tariff, China woes
US tariffs had an impact of hundreds of millions of euros on Mercedes-Benz. Photo by THOMAS KIENZLE / AFP/File FRANKFURT — Premium German carmaker Mercedes-Benz said Wednesday its second-quarter profit plunged nearly 70 percent due to US tariffs and weak sales in China, prompting it to lower its full-year revenue outlook. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account Net profit for the period was 957 million euros (US$1.1 billion), far below the 1.5 billion analysts polled by financial data firm FactSet had expected. Without tariffs the firm's car business would have achieved a profit margin of 6.6 percent compared to an actual 5.1 percent, Mercedes-Benz said. That amounts to a cost of hundreds of millions of euros given overall sales of 24.2 billion euros at the cars division for the quarter. Mercedes-Benz CEO Ola Kaellenius said the results were 'robust' considering 'the dynamic business environment'. 'We're adapting to new geopolitical realities by using our global production footprint intelligently,' he added. Trump in April slapped an additional 25-percent levy on imported cars as part of an aggressive trade policy he says will help boost US manufacturing. This advertisement has not loaded yet, but your article continues below. That hit European carmakers, with Jeep- and Citroen-owner Stellantis as well as auto giant Volkswagen all reporting slumping North American sales at recent results. Mercedes-Benz's own sales by volume fell 12 percent in the United States over the period. In China they tumbled 19 percent, underlining the challenge the company faces against local competitors such as BYD. Mercedes-Benz put out new guidance for the year to take account of tariffs, forecasting groupwide revenue 'significantly below' the 146 billion euros it took in last year. Back in February it expected 2025 revenue to be 'slightly below' the 2024 level. Along with other carmakers, Mercedes-Benz then withdrew its guidance in April whilst it digested the impact of Trump's tariff blitz. At its key cars division Mercedes-Benz said that it now forecasts a profit margin of between 4 and 6 percent, including the effects of tariffs. Excluding tariffs it expects a profit margin of between 6 and 8 percent. MLB Wrestling Ontario Toronto & GTA Wrestling
Reuters
a day ago
- Automotive
- Reuters
Mercedes-Benz to cut EV prices in the US, pause some deliveries as demand falters
July 30 (Reuters) - Mercedes-Benz ( opens new tab will pause deliveries of its EQ electric range to the United States and cut prices of new EQ models there, the carmaker said on Wednesday, responding to slowing demand and high inventories at dealerships. Since President Donald Trump's spending bill earlier this month cut tax EV credits sooner than anticipated, analysts have warned that the U.S. EV market would underperform expectations this year. During the pause, Mercedes will run down EQ inventories in the U.S. and also supply cars made in its plant in Tuscaloosa, Alabama. The company also said it would cut the base price of its EQE and EQS sedan and SUV models in the U.S. between 4% and 16% starting with the 2026 model year, excluding delivery charges. Mercedes CEO Ola Kaellenius told reporters on Wednesday that despite the slower trajectory, he expected U.S. consumers to buy more battery electric vehicles (BEVs) over time. Presenting the company's second-quarter results, he said: "We don't believe that the BEV demand in the United States goes to zero: we still think that the medium to long-term adoption rate of BEVs in the U.S. will creep upwards." The carmaker said in February that it would make more petrol and diesel cars than EVs in its new product range. It said it was targeting 19 new combustion engine models and 17 BEVs by the end of 2027, after its BEV sales dropped by a quarter last year.
Yahoo
a day ago
- Automotive
- Yahoo
Mercedes-Benz pauses EV deliveries to the US as demand falters
By Alessandro Parodi and Amir Orusov (Reuters) -Mercedes-Benz will pause deliveries of its EQ electric range to the United States, the carmaker said on Wednesday as it responded to slowing demand and high inventories at dealerships. Since President Donald Trump's spending bill earlier this month cut tax EV credits sooner than anticipated, analysts have warned that the U.S. electrification drive will underperform expectations this year. "Mercedes-Benz is temporarily putting on hold order banks for EQ models in the U.S. to align with current market demand," a spokesperson for the company said. Mercedes produces cars, including battery-electric vehicles (BEVs), in its U.S. plant of Tuscaloosa, Alabama, which supplies its network of dealers in the country. The group's CEO Ola Kaellenius told reporters on Wednesday that despite the slower trajectory, he expected U.S. consumers to buy more EVs over time. Presenting the company's second-quarter results, he said: "We don't believe that the BEV demand in the United States goes to zero: we still think that the medium to long-term adoption rate of BEVs in the U.S. will creep upwards." The carmaker said in February that it would make more petrol and diesel cars than EVs in its new product range. It said it was targeting 19 new combustion engine models and 17 battery-electric cars by the end of 2027, after its battery-electric sales collapsed by a quarter last year. Sign in to access your portfolio
Reuters
a day ago
- Automotive
- Reuters
Mercedes-Benz pauses EV deliveries to the US as demand falters
July 30 (Reuters) - Mercedes-Benz ( opens new tab will pause deliveries of its EQ electric range to the United States, the carmaker said on Wednesday as it responded to slowing demand and high inventories at dealerships. Since President Donald Trump's spending bill earlier this month cut tax EV credits sooner than anticipated, analysts have warned that the U.S. electrification drive will underperform expectations this year. "Mercedes-Benz is temporarily putting on hold order banks for EQ models in the U.S. to align with current market demand," a spokesperson for the company said. Mercedes produces cars, including battery-electric vehicles (BEVs), in its U.S. plant of Tuscaloosa, Alabama, which supplies its network of dealers in the country. The group's CEO Ola Kaellenius told reporters on Wednesday that despite the slower trajectory, he expected U.S. consumers to buy more EVs over time. Presenting the company's second-quarter results, he said: "We don't believe that the BEV demand in the United States goes to zero: we still think that the medium to long-term adoption rate of BEVs in the U.S. will creep upwards." The carmaker said in February that it would make more petrol and diesel cars than EVs in its new product range. It said it was targeting 19 new combustion engine models and 17 battery-electric cars by the end of 2027, after its battery-electric sales collapsed by a quarter last year.
Free Malaysia Today
2 days ago
- Automotive
- Free Malaysia Today
Mercedes-Benz profit plunges on tariff, China woes
Mercedes-Benz's net profit for Q2 was US$1.1 billion. (EPA Images pic) FRANKFURT : Premium German carmaker Mercedes-Benz said today its second-quarter profit plunged nearly 70% due to US tariffs and weak sales in China, prompting it to lower its full-year revenue outlook. Net profit for the period was €957 million (US$1.1 billion), far below the 1.5 billion analysts polled by financial data firm FactSet had expected. 'Without tariffs the firm's car business would have achieved a profit margin of 6.6% compared to an actual 5.1%,' Mercedes-Benz said. That amounts to a cost of hundreds of millions of euros, given overall sales of €24.2 billion at the cars division for the quarter. Mercedes-Benz CEO Ola Kaellenius said the results were 'robust', considering 'the dynamic business environment'. 'We're adapting to new geopolitical realities by using our global production footprint intelligently,' he added. Trump in April slapped an additional 25% levy on imported cars as part of an aggressive trade policy he says will help boost US manufacturing. That hit European carmakers, with Jeep- and Citroen-owner Stellantis as well as auto giant Volkswagen all reporting slumping North American sales at recent results. Mercedes-Benz's own sales by volume fell 12% in the US over the period. In China they tumbled 19%, underlining the challenge the company faces against local competitors such as BYD. Mercedes-Benz put out new guidance for the year to take account of tariffs, forecasting groupwide revenue 'significantly below' the €146 billion it took in last year. Back in February it expected 2025 revenue to be 'slightly below' the 2024 level. Along with other carmakers, Mercedes-Benz then withdrew its guidance in April whilst it digested the impact of Trump's tariff blitz. At its key cars division Mercedes-Benz said that it now forecasts a profit margin of between 4% and 6%, including the effects of tariffs. Excluding tariffs it expects a profit margin of between 6% and 8%.
