Core Insights - Mercedes-Benz Group reported a significant decline in Q3 2025 financial performance, with revenue dropping by 6.9% year-over-year to €32.15 billion and net profit decreasing by 30.8% to €1.19 billion [1] - The company is facing challenges such as increased layoff costs, U.S. tariff pressures, and weak demand, prompting a restructuring plan aimed at saving €5 billion globally by 2027 [1] Financial Performance - Q3 2025 revenue: €32.15 billion, down from €34.53 billion in Q3 2024, a decrease of 6.9% [1] - Q3 2025 operating profit: €750 million, down 70.2% from €2.52 billion in Q3 2024 [1] - Adjusted EBIT for Q3 2025: €2.10 billion, down 17.3% from €2.54 billion in Q3 2024 [1] - Net profit for Q3 2025: €1.19 billion, down 30.8% from €1.72 billion in Q3 2024 [1] - Free cash flow for Q3 2025: €1.37 billion, down 42.9% from €2.39 billion in Q3 2024 [1] Sales Performance - Global sales in Q3 2025 reached 525,300 units, a decline of 12% year-over-year [2] - Passenger car sales: 441,450 units, down 12.3% from the previous year [2] - Electric vehicle sales increased by 10% to 96,300 units, with pure electric vehicle sales rising by 22% to 51,200 units [2] - In Europe, Q3 sales were 160,800 units, up 1% year-over-year, while North America and Asia saw declines of 1% and 7%, respectively [2] Market Context - The challenges faced by Mercedes-Benz are reflective of broader issues within the luxury automotive sector, with competitors like BMW and Porsche also experiencing sales declines [4] - BMW's Q3 2025 deliveries were 588,300 units, an increase of 8.8%, but with a slight decline in China [4] - The competitive landscape is shifting, with Mercedes-Benz planning new electric models such as the all-electric GLC and CLA, aiming to adapt to changing market dynamics [4][6]

Core Viewpoint - Mercedes-Benz is implementing its largest layoff plan in history, aiming to encourage around 30,000 employees to voluntarily leave by offering substantial severance packages, with the goal of saving approximately €5 billion annually by 2027 [3][5]. Group 1: Layoff Plan and Compensation - Approximately 4,000 employees have accepted the voluntary severance package, with senior management potentially receiving up to €500,000 (over 4 million RMB) in compensation [3][5]. - The severance package is designed with a gradient structure based on job level and years of service, including an "accelerated bonus" to incentivize early decision-making [5][7]. - The layoff plan primarily targets employees in engineering, administration, and IT sectors, with applications open until March 2026 [7]. Group 2: Market Performance and Sales Decline - Mercedes-Benz reported a significant decline in global sales, with a 12% year-on-year drop in Q3, totaling 525,300 vehicles sold [12]. - In China, the largest single market for Mercedes-Benz, sales fell by 27% year-on-year in Q3, worsening from a 19% decline in Q2 [12][13]. - The U.S. market also faced challenges, with a 17% decrease in sales to 70,800 vehicles [12]. Group 3: Competitive Landscape and Pricing Strategy - The automotive industry in Germany is experiencing overall performance declines, with competitors like BMW and Volkswagen also reporting reduced sales and profits [7][8]. - Mercedes-Benz has seen drastic price reductions for several models, with discounts reaching up to 50% in some cases, driven by increased market competition [9][10]. - The company is adjusting its marketing strategies to cope with the competitive environment, as luxury brands are becoming more common and price-sensitive [10]. Group 4: Future Outlook and Product Strategy - Despite challenges in major markets, Mercedes-Benz is focusing on long-term customer value and high-end product experiences in China [13]. - The company is accelerating product updates, with plans for new electric models and high-end vehicles set to launch in the near future [13].

| | Q3 2025 | Change | Chang | | --- | --- | --- | --- | | | | Q2 2025 | Q3 20 | | Mercedes-Benz Group | 525,300 | -4% | -12% | | - thereof BEVs | 51,200 | +22% | +9% | | Mercedes-Benz Cars | 441,500 | -3% | -12% | | - thereof BEVs | 42,600 | +22% | 0% | | । thereof xEVs | 96,300 | +3% | +10% | | Mercedes-Benz Cars sales by segments* | | | | | --- | --- | --- | --- | | Top-End | 67,800 | +5% | +10% | | Core | 249,800 | -9% | -17% | | Entry | 123,800 | +8% | -12% | 梅赛德斯-奔驰乘用车第三季度销售 44.15 万辆。受中国市场环境及美国产品库存调控影 ...