Mercedes-Benz has warned that its profits will be “significantly” lower this year and launched a fresh cost-cutting programme, as the German carmaker braces itself for a yet bigger hit if US President Donald Trump follows through on his threats of import tariffs.
The Stuttgart-based company on Thursday said it expected profit margins — which fell to 8.1 per cent in 2024 from 12.6 in the previous year — to range between 6 and 8 per cent in 2025, excluding any potential impact from higher US tariffs.
“The outlook is based on the current regulatory framework, any additional tariffs over and above are not included in this guidance,” said Mercedes-Benz CFO Harald Wilhelm.
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