Carmaker
Save and new cars: This is how Mercedes wants to become more profitable
In 2024 the profit collapsed at Mercedes-Benz. Now the car manufacturer is presenting a plan to become more profitable again. What does it look like – and what does that mean for the positions in Germany?
After a weak fiscal year with a rich burglary, Mercedes-Benz wants to go back to the road to success. The car manufacturer presented a plan in Sindelfingen near Stuttgart to increase profitability and sales again in the next few years.
“In order to ensure the future competitiveness of the company in an increasingly inconsistent world, we take measures to make the company slimmer, faster and stronger,” said Mercedes-Benz boss Ola Källenius.
Car division should become more profitable again
Finance should be polished up with several measures, a savings program should help. The profitability of the car division, i.e. the adjusted sales return, is to come back to the double-digit range. According to CFO Harald Wilhelm, the ambition is to reach it in 2027. In 2024 it was 8.1 percent. In 2023 it was still 12.6 percent.
The costs will continue to be scrubbed in the next few years. By 2027, production costs are to decrease by ten percent compared to today, the statement said. In addition, the material costs would be optimized, and the fixed costs should also decrease by a further ten percent by 2027.
Job cuts in Germany about fluctuation
The capacities in the works for the cars for 2.5 million units are to be reduced globally to 2 to 2.2 million units by 2027. According to the announcement, factory closures in Germany are not provided. Among other things, constructive discussions with the works council were on the fixed costs – and thus also to the staff. In Germany, for example, positions in Germany were dismantled, said CFO Wilhelm. At first he did not give details.
For the majority of employees in Germany, an employment security, internally called “Zusi 2030”, applies, which in principle excludes operational termination notice until the end of 2029.
In the case of sales, the company hopes for positive effects through new and updated models by 2027. This year, the new CLA, which will in future be the entry -level model of the product range. Mercedes boss Källenius spoke of the largest technology and product offensive in the history of the company. In 2024, Mercedes sold a little more than 1.98 million cars. In the previous year there were over two million.
Especially because of the poorly running business in China, Mercedes-Benz had suffered a significant slump in profits last year. The group result fell over a good 28 percent to EUR 10.4 billion in the year. Sales fell by 4.5 percent to 145.6 billion euros in the year. The result from interest and taxes slipped by almost a third to 13.6 billion euros.
In the current year, the car manufacturer expects with even stronger headwind and less result. Marge, which was adjusted for special effects, before interest and taxes in the car business should only be six to eight percent of sales in 2025. This year, the corporate turnover is likely to remain below the level of the previous year. The Stuttgarters also expect a slight decline in the sales of cars. In 2024, sales were 1.98 million units. The group result before interest and taxes is likely to fall significantly.
dpa
Source: Stern
