Group 1 - The core viewpoint of the article highlights the significant decline in Mercedes-Benz Group's net profit by 69% year-on-year to €9.57 billion in Q2, primarily due to declining sales and increased tariffs impacting revenue forecasts for 2025 [1][2][5] - In Q2, Mercedes-Benz's automotive sales dropped by 9% to 453,700 units, with a notable 19% decline in the Chinese market, which sold 140,400 units [1][2][3] - The company's revenue for Q2 was €33.15 billion, down 9.8% year-on-year, and the adjusted EBIT fell by 68.56% to €1.27 billion [2][3] Group 2 - Mercedes-Benz anticipates a significant decrease in annual automotive sales due to tariff impacts, projecting a profit margin of 4%-6% for its automotive business this year [5][6] - The company has revised its earlier guidance, which expected only a slight revenue decline and a sales return rate of 6%-8% [6] - The recent trade agreement between the US and EU, reducing tariffs on European cars to 15%, may benefit Mercedes-Benz, as it exports a significant portion of its vehicles from Europe to the US [6][7] Group 3 - The electric vehicle segment accounted for 20.7% of total sales in Q2, although total electric vehicle sales decreased by 24% [3] - The commercial vehicle segment saw a 10% decline in sales, with electric vans experiencing a 32% increase in sales compared to the previous year [3][4] - The overall market outlook remains weak, with expectations of stagnant global and European automotive markets, while the US market is projected to decline slightly [7]

Core Insights - Mercedes-Benz Group reported a significant decline in net profit, dropping 69% year-on-year to €957 million in Q2, highlighting increasing pressures on its global business [2][4] - The company anticipates a substantial decrease in annual revenue for 2025, primarily due to tariff impacts on car and truck sales [4][5] Financial Performance - In Q2, Mercedes-Benz Group's revenue was €33.15 billion, down 9.8% year-on-year, and below market expectations of €33.23 billion [2] - The adjusted EBIT fell 68.56% to €1.27 billion, compared to €4.04 billion in the same period last year [2] - Earnings per share decreased from €2.95 to €0.95 [2] Sales and Market Trends - Mercedes-Benz vehicle sales declined by 9% to 453,700 units in Q2, with a notable 19% drop in the Chinese market [2][3] - The company’s electric vehicle sales accounted for 20.7% of total sales, an increase from 18.1% in the previous quarter, although total electric vehicle sales fell by 24% [3] - In the first half of 2025, total vehicle sales are expected to decrease by 6% to 900,000 units, with a 14% decline in China and a 6% decline in the U.S. [3][4] Future Outlook - The company warned that due to tariffs and market volatility, it cannot provide reliable financial guidance for the upcoming year [4] - Mercedes-Benz Group expects its automotive business profit margin to be between 4% and 6% for the year, factoring in nearly $420 million in tariff impacts [4] - The company is implementing a performance plan that includes layoffs and shifting production to lower-cost countries to enhance competitiveness [6]

Core Viewpoint - The Mercedes-Benz Group is facing significant challenges, with a 69% drop in net profit and declining sales, particularly in the Chinese market, indicating a potential long-term downturn in the luxury automotive sector [1][2][5]. Financial Performance - In Q2, the net profit of the Mercedes-Benz Group fell by 69% to €9.57 billion, significantly below market expectations of €12.9 billion [2]. - Revenue for Q2 was €33.15 billion, down 9.8% year-on-year, while EBIT fell by 68.56% to €1.27 billion [2][3]. - The adjusted EBIT for the automotive business decreased by 56% to €1.23 billion, with automotive sales down 9% to 453,700 units [3]. Sales and Market Trends - Mercedes-Benz's automotive sales in China dropped by 19% to 140,400 units, contributing to an overall decline in sales [1][3]. - In contrast, Chinese brand passenger cars saw a 25% increase in sales, capturing 68.5% of the market share [1]. - The company reported a 24% decrease in electric vehicle sales, while plug-in hybrid vehicle deliveries increased by 34% [3]. Future Outlook - The company anticipates a significant decline in annual revenue due to tariffs impacting car and truck sales, projecting that 2025's sales will be substantially lower than last year [5][6]. - The profit margin for the automotive business is expected to be between 4% and 6%, influenced by tariffs amounting to approximately $420 million [6]. - The company is implementing a performance plan that includes layoffs and shifting production to lower-cost countries to enhance competitiveness [9]. Market Conditions - The automotive market in Europe and globally is expected to remain at last year's levels, with slight declines anticipated in the U.S. market and a modest increase in China [10]. - The recent U.S.-EU trade agreement, which reduces tariffs on European cars, may benefit the Mercedes-Benz Group, as it exports a significant portion of its vehicles from Europe to the U.S. [8].