Mercedes-Benz reported a sharp drop in profits for the year’s first quarter, citing weaker demand in China and rising concerns about US trade policies. The company’s net profit fell nearly 43%, totaling €1.73 billion ($1.93 billion), compared to the same period last year.
Despite the decline, Finance Chief Harald Wilhelm said the company remains stable due to strong sales of luxury vehicles and a solid financial base. He expressed confidence in Mercedes-Benz’s ability to manage ongoing global challenges.
According to FactSet data, earnings before interest and tax also declined, reaching €2.29 billion, falling short of analyst expectations by about 15%.
Sales in China dropped nearly 25%, as local automakers like BYD gained market share with cheaper, locally tailored electric vehicles. Overall global revenue dipped by 7.4%, while revenue in the United States—accounting for nearly a quarter of the company’s total—fell by 4.4%.
In response to growing uncertainty around global trade policies, Mercedes-Benz has withdrawn its financial forecast for the year. The company said that volatility in tariff regulations, especially from the US, makes it difficult to predict business outcomes with any confidence.
The warning comes as the US government continues to push for domestic manufacturing, with threats of a 25% tariff on car imports. Mercedes-Benz noted that if these policies remain in place through year-end, significant financial impacts are likely.
