Mercedes-Benz FY25 earnings set to fall, announces further cost-cutting efforts

(Sharecast News) - German automotive giant Mercedes-Benz warned on Thursday that FY25 earnings were set to fall as it issued a rather bleak outlook and announced further cost-cutting efforts as it attempts to revive margins. Following a 30% slump in FY24, Mercedes-Benz warned that earnings would fall yet again in FY25, stating it expects a rate of return of just 6-8% in its car division.

Mercedes-Benz said it will look to cut production costs by roughly 10% by FY27 and while it said it would not shut down plants in Germany, the company will shift production of one of its models to Hungary, where costs are approximately 70% lower.

"We're looking at our entire business model and every cost category" said chief executive Ola Källenius, who also noted that the cuts would make Mercedes "slimmer, faster and stronger".

As of 1130 GMT, Mercedes shares were down 1.73% at €60.12 each.









Reporting by Iain Gilbert at Sharecast.com