Motor finance redress scheme
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Mercedes‑Benz reports softer third quarter
Yahoo Finance· 2025-10-30 09:07
Core Insights - Mercedes-Benz Group reported weaker results for Q3 2025, with a 7% decline in group revenue to €32.14 billion ($37.37 billion) and a 70% drop in EBIT to €750 million, impacted by reduced gross profitability and significant special charges [1][2] Financial Performance - Group revenue decreased by 7% to €32.14 billion ($37.37 billion) [1] - EBIT fell 70% to €750 million, while adjusted EBIT decreased 17% to €2.09 billion [1] - Net profit declined by 31% to €1.19 billion, resulting in earnings per share of €1.22, a 33% drop [1] Special Charges and Legal Proceedings - Legal proceedings and related measures amounted to €427 million, a significant increase from €20 million, primarily recognized at Mercedes-Benz Mobility [3] - The group increased other provisions related to the UK's motor finance redress scheme by a mid-three-digit million-euro amount in Q3 2025 [3] Segment Performance - Mercedes-Benz Cars revenue fell 7.3% to €23.74 billion, with adjusted EBIT at €1.13 billion, down from €1.20 billion [4] - The division sold 441,453 vehicles in the quarter, affected by market conditions in China and tariff policies in the US [4] - Mercedes-Benz Vans revenue decreased by 13.2% to €4.04 billion, with adjusted EBIT at €412 million; electric van sales increased by 96% [5] - Mercedes-Benz Mobility's revenue slipped 3.4% to €5.80 billion, but adjusted EBIT improved to €313 million from €285 million [5] Overall Trends - Over the first nine months of 2025, group revenue decreased by 8% to €98.52 billion [5] - EBIT dropped 59% to €4.31 billion, with adjusted EBIT falling 35% to €6.63 billion, and net profit halved to €3.87 billion [6]
FCA’s £11bn redress plan: the big questions for motor finance firms
Yahoo Finance· 2025-10-09 13:29
The FCA’s proposed motor finance redress scheme has landed, and with it, a hefty price tag. The regulator estimates £8.2 billion in compensation for customers, plus an additional £2.8 billion in implementation costs, bringing the total industry bill to around £11 billion. The Finance & Leasing Association (FLA) isn’t convinced. Chief executive Shanika Amarasekara said the figures “remain too high” with the FLA's Adrian Dally also calling for transparency on how the FCA arrived at them. The consultation do ...