Latest news with #EQS
Mint
4 hours ago
- Automotive
- Mint
Mercedes, Porsche Cut Forecasts as US Tariffs Hammer German Cars
Mercedes-Benz Group AG and Porsche AG scaled back their profit expectations for the year, underscoring the toll President Donald Trump's trade war is taking on some of Europe's largest luxury-car makers. The two German manufacturers on Wednesday flagged the twin pressures of new US tariffs and intensifying competition in China, where an electric-vehicle price war is undermining demand for pricier models. Mercedes now expects its carmaking margin to slide as low as 4%, from at least 6% previously, as the duties weigh on pricing and sales. Porsche, which lacks a US factory, cut its outlook for the third time this year after Trump's deal on Sunday with the European Union slapped 15% tariffs on autos imported from the bloc. Aston Martin Lagonda Global Holdings Plc also walked back forecasts on Wednesday, a day after Stellantis NV warned that the US duties will weigh on the Jeep maker's already struggling North American business. The mounting trade barriers are adding to a structural shift in China, where a fierce EV price war led by local brands including BYD Co. is eroding margins. Porsche and Mercedes have struggled to gain traction in the world's biggest auto market with their more premium models like the Taycan and the EQS, the battery-powered version of Mercedes' flagship S-Class limousine. Meanwhile, Chinese automakers such as BYD and Geely are pushing into Europe's stagnant car market. 'We continue to face significant challenges around the world,' Porsche Chief Executive Officer Oliver Blume said. 'And this is not a storm that will pass.' The sports-car maker controlled by Volkswagen AG is trying to get back on its feet by replacing several top managers, slashing costs further — including through job cuts — and adding more combustion-engine and plug-in hybrid models. The US recently overtook China as Porsche's single biggest market, but the company has no local factory and imports all of the cars it sells there from Europe. One of several options being considered as part of parent Volkswagen's US production expansion is final assembly of Porsche models there, Bloomberg previously reported. Mercedes plans to shift production of the GLC SUV to the US to offset the charges. For Mercedes, the headwinds are undermining a strategy initiated in 2022 to bolster profitability by shifting further upmarket. The company is prioritizing its most lucrative offerings — such as Maybach limousines, AMG performance models and the G-Wagon — while scaling back lower-margin entry-level cars like the compact A-Class. But the US duties and the poor China performance are weighing on Mercedes' pricing and sales, and the company warned that group revenue for 2025 will come in significantly below last year's level. In the second quarter, Mercedes' automaking margin dropped to 5.1% — well below levels associated with the luxury push started by CEO Ola Källenius. The company also flagged weaker demand for vans and declining revenue in its mobility services division as drags on performance. Mercedes shares declined as much as 2% in Frankfurt. The stock is down around 1% this year. Porsche rose 2.3% as of 10:12 a.m. local time as analysts pointed to better-than-expected revenue and cash flow. The company's shares are still down more than a fifth this year. Porsche flagged that its return on sales for the year could slide as low as 5%, having previously targeted at least 6.5%. The updated forecast includes the US tariff hit and roughly €1.3 billion of costs related to the brand's strategic reset. Mercedes and Porsche are among automakers most exposed to trade friction. They faced a 27.5% levy on vehicles exported from the EU to the US for much of the second quarter. Mercedes also exports SUVs built at its Alabama plant to China, where they incurred duties exceeding 100% before a mid-May trade truce reduced the rate to about 35%. The German company earlier this year withdrew its guidance in response to Trump's trade moves and on Wednesday reinstated it. Without the impact of tariffs, Mercedes' carmaking margin would remain within the prior 6% to 8% guidance range, the company said. Profitability also got hit by restructuring measures, including a voluntary redundancy program for back-office staff and the sale of its van operations in Argentina. With assistance from Jamie Nimmo and Craig Trudell. This article was generated from an automated news agency feed without modifications to text.
Mint
8 hours ago
- Automotive
- Mint
Mercedes Sees Earnings Drop Over Tariffs, China Competition
Mercedes-Benz Group AG reinstated guidance at a lower level, citing pressure from President Donald Trump's tariffs and tough competition in China, where local brands are dominating on electric vehicles. The German manufacturer now expects a carmaking margin of as low as 4% this year, below the at least 6% it had projected before withdrawing its outlook due to Trump's trade moves. The duties are weighing on prices and sales, and Mercedes warned that group revenue will come in significantly below last year's level. The mounting trade hurdles add to a deeper structural challenge in China, where a fierce EV price war led by domestic automakers is hurting margins. Mercedes has struggled to gain traction there with its more expensive models like the EQS, the battery-powered version of its flagship S-Class limousine. The likes of BYD Co. are also expanding in Europe's stagnant auto market. Mercedes' carmaking margin halved to 5.1% in the second quarter after unit sales fell 9%. The company also cited significantly lower demand for vans and declining revenue for its mobility business. The luxury-car maker is among companies heavily exposed to tariffs. Mercedes faced 27.5% in levies on cars shipped from the European Union to the US for much of the second quarter. It also exports sport utility vehicles made at its Alabama plant to China, where they faced local levies well above 100% early last quarter before a mid-May trade truce lowered them to roughly 35%.
Daily Maverick
5 days ago
- Science
- Daily Maverick
‘Hidden' Beneath Our Feet: The Wonder of South Africa's Geological Heritage
When we speak of South African heritage, we often think of ancient rock art, vibrant languages, and deep-rooted cultural traditions, maybe even the fabled braai! But woven into the very ground beneath our feet is another story—older, vaster, and just as awe-inspiring. South Africa is home to some of the planet's most extraordinary geological wonders: rocks that record the origins of life, those that have withstood intense folding and deformation, even surviving cataclysmic events that shaped the Earth itself. This is a land where 3-billion-year-old rocks lie just a stone's throw from bustling cities, where gold and platinum-rich layers speak of deep-Earth processes, and where volcanic lavas once linked what are now distant continents. Just as rock art connects us to ancient human expression, the rocks of South Africa connect us to the ancient forces that made our world. Our geological heritage is not just a scientific treasure—it's a natural legacy as rich, powerful, and uniquely African as any monument or tradition. It's time to look down, and marvel. Giant (1-2 m) 'pillows' preserved in 2.9 billion year old lava flows show evidence of eruptions under water in lakes or seas. These domes, called stromatolites, preserve ancient evidence of algal mats—some of the earliest evidence of life on Earth. To aid us on this quest, the School of Geosciences at the University of the Witwatersrand has launched Earth Quest Solutions (EQS). EQS's most novel offering is arguably the Geotourism experiences we have planned. These events will give us the opportunity to share South Africa's vast untapped geological heritage, stemming from our unique geology, with local and international scientists, students and the general public. Our hope is that these experiences both educate and inspire audiences about the incredible natural resources of our country and the role that geoscience plays in our economy and society. Join us on this inaugural 'Geo-Safari through Earth's Ancient Past'. DM
Miami Herald
6 days ago
- Automotive
- Miami Herald
2027 Mercedes EQS Spied With Updates As Sales Falter
Like the other Mercedes prototypes captured through the lens of our spy photographers, the facelift of the EQS SUV will feature revised daytime running light graphics, with a three-pointed star motif appearing in the headlights. The taillights, at least on this prototype, are unchanged. Since there's camouflage on the bumpers, we can expect some subtle changes in those areas too; our spies say the front "grille" panel will be revised. The X296 EQS SUV has only been on the market since 2022, and as is the case with the sedan that shares its name, customer interest in the all-electric SUV has been low. These subtle styling updates will aim to bring the EQS more in line with the styling of conventional Mercs to help reverse that disinterest, and there'll be more changes beneath the skin. The current EQS SUV offers an EPA-estimated maximum range of up to 323 miles, but the future models are expected to exceed that with the same sort of battery as the recently launched CLA, which set a world record for EVs by covering 2,309 miles in 24 hours last year. The compact sedan has an 85-kWh battery with anodes made of silicon oxide mixed with graphite, something Mercedes says increases energy density by as much as 20 percent compared to previous batteries, so the new EQS should exceed 350 miles of range in most forms. The EQS is also expected to feature eATS 2.0 motors, delivering more power and efficiency from the modified EVA2M architecture, which supports 800-volt technology. Our spies say the new EQS will be presented at IAA Mobility 2025, taking place from 9-14 September, so we'll know more soon. Still, despite these improvements, the EQS may not be successful. Some reports indicate the EQS name will disappear altogether, and even Mercedes admits that it made mistakes in the EV space. Recently, CarBuzz reported that Mercedes is closing its U.S. order books for the EQE and EQS sedans and SUVs, halting production from September 1. No timeline for a return was announced, but with huge price cuts of over $10,000 on some models, it seems that Mercedes has more inventory than it knows what to do with. With EV incentives going away at the end of September, shifting the EQS will be even tougher for dealers, and we doubt the facelifted model will fare much better. Then again, a lot can change between now and next year, when the 2027 EQS is expected to reach the market. Copyright 2025 The Arena Group, Inc. All Rights Reserved.
Entrepreneur
19-07-2025
- Automotive
- Entrepreneur
The Luxury EV Innovator
We continue to redefine the top-end luxury BEV segment with an unparalleled blend of technology and luxury appointments, says Santosh Iyer, Md & CEO, Mercedes-Benz India You're reading Entrepreneur India, an international franchise of Entrepreneur Media. With strong local manufactur ing, a growing charging infra structure, and an unrelenting focus on premium experi ence, Mercedes-Benz India under Santosh Iyer is not just keeping pace with global EV trends — it's setting the benchmark for luxury electrification in one of the world's most dynamic markets. According to Iyer, the company's early and consistent focus on top-end luxury battery electric vehicles (BEVs) has helped accelerate segment adop tion. "We continue to redefine the top-end luxury BEV segment with an unparalleled blend of technology and luxury appointments," he explains. The result? A 73% year-to-date growth in BEV sales as of May 2025 — significantly outpacing the 66% growth in the overall luxury BEV segment. The demand is being fueled by vehicles like the EQS range, the EQS Maybach SUV, and the G580 with EQ Technology — all of which exemplify opulence, performance, and electric engineering. "EV adoption is a long journey," says Iyer. "We must take our customers and partners along in this transition." From home to dealership to road trips, the company ensures 24x7 charging support across more than 50 DC fast chargers (60–180 kW) installed countrywide. Interestingly, the Indian luxury EV landscape is evolving in a distinct way. "In India, BEV adoption is largely driven by strong demand for top-end BEVs, which is unique and underlines our custom ers' preferences," notes Iyer. This aligns seamlessly with the brand's global 'Ambition 2039' mission — aiming for a carbon-neutral and digitally connected future. Moreover, Mercedes-Benz is the only luxury car maker currently producing two world-class BEVs in India — the EQS 580 4MATIC sedan and the EQS 450 SUV, reinforcing its local commitment without compromising on product substance or quality. Meeting the expectations of Indian luxury consumers means prioritizing range, performance, and charging convenience. Iyer proudly recalls the Made-in-India EQS 580 that set a Guinness World Record in 2024, traveling 949 km from Bengaluru to Mumbai on a single charge — a tangible testa ment to its engineering prowess. "Using a luxury BEV is embracing future tech nology," he reflects. "The learning curve is steep, but rewarding." Despite its remarkable progress, Iyer acknowl edges the barriers to rapid EV adoption: high up front costs, inconsistent state policies on road tax, patchy fast-charging networks, and lack of a unified digital payment interface. "These factors continue to deter luxury BEV customers from switching faster," he notes. Yet, each year sees measurable improvements. The fact that BEVs already account for 8% of Mercedes-Benz India's overall sales, with rising momentum in 2025, signals a tipping point ahead. EVs aren't just about batteries — they're about brains. Iyer emphasizes the cultural transfor mation needed to steer a traditional auto OEM into a future-ready tech-driven entity. "Agility, flatter hierarchies, and faster market adaptability are essential," he asserts. "With shorter product cycles and rapidly evolving technology, in novation and software integration will become key differentiators." Looking ahead, Iyer is pragmatic but optimistic. While market transformation will dictate the pace, the Mercedes-Benz BEV portfolio is expected to grow steadily in volume and desirability.
