Core Viewpoint - Mercedes-Benz is experiencing a significant decline in both sales and profits, primarily due to weak demand, tariff impacts, and intensified competition in the electric vehicle market [1] Sales Performance - In the first half of 2025, global sales of Mercedes-Benz vehicles reached 899,900 units, representing a year-on-year decrease of 6% [1] - Sales in China specifically fell to 293,000 units, marking a 14% decline compared to the previous year [1] Financial Performance - Mercedes-Benz reported a 56% drop in net profit for the first half of 2025, with revenue and net profit figures at €66.38 billion and €2.69 billion, respectively, both showing year-on-year declines of 9% and 56% [1] - In the second quarter, the company’s revenue and net profit were €33.15 billion and €0.96 billion, reflecting year-on-year decreases of 10% and 69% [1] Impact on Dealerships - The decline in performance has led to a wave of dealership closures, with numerous Mercedes-Benz owners reporting that their purchasing dealerships have had their authorizations terminated by the company [1] - Some dealerships have completely ceased operations, while others are seeking to pivot their business models [1]