The Mercedes star, the model brand of the automobile producer Mercedes-Benz, rotates on a constructing of a Mercedes-Benz automotive dealership.
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German luxurious automotive producer Mercedes-Benz Group on Thursday reported a steep drop in full-year revenue and warned of difficult instances forward, following a yr marred by intense competitors from Chinese language rivals and world tariff prices.
The automaker posted full-year working revenue of 5.8 billion euros ($6.9 billion) in 2025, reflecting a 57% drop from a yr in the past. The end result was considerably decrease than analyst expectations of 6.6 billion euros.
Mercedes-Benz Group stated its earnings had been formed by overseas change headwinds and competitors in China, alongside a reported 1 billion euro ($1.2 billion) hit in tariff prices.
“Amid a dynamic market atmosphere, our monetary outcomes remained inside our steerage, due to our sharp deal with effectivity, pace, and suppleness,” Ola Källenius, chairman of the board of administration at Mercedes-Benz Group, stated in a press release.
Mercedes-Benz Group stated it deliberate additional value cuts in 2026 in addition to a flurry of product launches, in search of to hit an 8% to 10% revenue margin at its auto division.
Shares of the Munich-listed firm fell 5.3% throughout morning offers.
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