The Mercedes group announced its financial results for the third quarter of 2024 and they were not good. Although turnover fell by only 4.7%, EBIT profit (before interest and taxes) fell 32.1%, net profit fell 31.4% and the earnings per share distribution, the most important for investors, was cut by 27.2%..
The star brand has invested in a series of electric vehicles, but they are all designed as an adaptation of models that were created to mount combustion engines. This requires a longer front end, unnecessary in electric vehicles, which have more compact mechanics, which allows designing larger cabins with the same exterior length. But the reality is that the EQA, EQB, EQE, EQE Suv, EQS, EQS Suv, the electric G-Class and the EQT and EQV vans make up a remarkable range of battery-powered models. However, sales of this type of car still decreased by 31% in the third quarter of 2024.
There appears to be some parallel between Mercedes’ declining EV sales and the brand’s profitability. Total sales of the Mercedes brand did not suffer much, as they fell by only 1.4%. However, in the same quarter, the profits (EBIT) of this one of the most reputable European construction companies fell by 63.8%.
Mercedes commercial vehicles also fell short of expectations, both in the cargo and passenger versions. The turnover provided by these models fell by 6.7%, but the EBIT profit fell by 48%, indicating a greater commercial effort (discounts and promotions) to sell the product. The distribution of profits of the Mercedes group among shareholders fell practically the same, that is, by 47.5%.
Source: Observadora
