Published by Global Banking & Finance Review®
Posted on January 7, 2025
2 min readLast updated: January 27, 2026
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Mercedes-Benz revises profit targets due to market weakness and EV shift, aiming for double-digit margins.
FRANKFURT (Reuters) - Mercedes-Benz will lower mid-term profitability targets for its passenger car business due to prolonged weakness in the market and the switch to electric-powered vehicles, a source familiar with the matter told Reuters on Tuesday.
The German premium automaker's management board, led by CEO Ola Kaellenius, will revise downwards the targets it set in 2022 by Feb. 20, when the company plans to hold its capital markets day, the source said.
In the best-case scenario, Mercedes will aim for profitability in a double-digit margin, the source added.
Three years ago, Mercedes said it expected an adjusted profit margin of up to 14% in positive market conditions and of no less than 8% in more difficult times.
The Handelsblatt business daily first reported on the plans to revise down the guidance.
Mercedes, which is ramping up cuts at the company after a weak third quarter, confirmed that a capital markets day with analysts was planned for Feb. 20, alongside the release of annual results. A spokesperson said the company would also firm up its medium-term targets.
In 2022, Mercedes posted an above-target return of 14.6%, boosted by high demand during the COVID-19 pandemic. Since then, profitability in its core passenger car business has been sliding.
(Reporting by Ilona Wissenbach, writing by Rachel More, editing by Thomas Seythal)
The main topic is Mercedes-Benz revising its profit outlook due to market challenges and the shift to electric vehicles.
Mercedes is revising its profit outlook due to prolonged market weakness and the transition to electric vehicles.
Mercedes will announce the revised targets on February 20 during its capital markets day.
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