Today, the German car retailer projected a notable decline in earnings for 2025, prompting the implementation of a new cost-cutting plan.
For 2025, Mercedes-Benz anticipates that vehicle sales will be lower than the 1.98 million sold in 2024. However, “sales are expected to gain traction after dozens of new or refreshed models reach the market until 2027.”
Amid fierce competition in the EV market, Mercedes-Benz CEO Ola Källenius informed investors, “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.“
Despite difficulties, the CEO assured investors 2024 was a win for the company, “Mercedes-Benz Group delivered solid results in a very challenging environment thanks to a range of outstanding products and strict cost discipline.”
The company’s 2025 plan now includes the implementation of “Next Level Performance”, aimed at strengthening its competitiveness and resilience.
The company announced: “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.”
By CEO NA Editorial Staff
