(Reuters) – Mercedes -Benz launched a plan aimed at reducing its production costs by 10% by 2027, said German luxury car manufacturer on Thursday, after a fall of 40.5% of its operating profit in 2024.
The manufacturer, whose sales were abused on its key markets that are China and Germany last year, wants to reduce its production costs and to launch dozens of models to improve its profitability.
It anticipates slightly lower sales in 2025 and an adjusted profitability of sales of only 6-8% for its automotive division, compared to 8.1% in 2024.
The group’s operating profit before interest and taxes (EBIT) dropped to 13.6 billion euros in 2024, while sales fell 4.5% to 146 billion euros.
As part of his strategic reorganization, the chairman of the executive board, Ola Kaellenius, announced that he would take measures “to guarantee the future competitiveness of the company in an uncertain world”.
The board of directors will offer a dividend of 4.30 euros per share under 2024, compared to 5.30 euros of 2023.
(Written by Andrey Sychev and Victoria Waldersee, Noémie Naudin, edited by Kate Entringer)
Copyright © 2025 Thomson Reuters
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
