MERCEDES-Benz joins a host of other car brands that have taken on more cost-cutting measures, as well as adding extra petrol and diesel cars to their range.
Mercedes-Benz is latest company in U-turn after sales ‘collapse’ as new car lineup is announced
MERCEDES-Benz joins a host of other car brands that have taken on more cost-cutting measures, as well as adding extra petrol and diesel cars to their range.
The German giants are hoping to revive their margins as they prepare for a drop in earnings this year - with one of their plans being less EVs added to their new product range.
Last week, the manufacturer announced it would release 19 new combustion engine models alongside 17 battery-electric cars by the end of 2027, according to a report by Reuters.
Industry experts were quick to point out that this renewed focus on combustion engines represents a U-turn on their recent policy - following their low battery-electric sales toward the end of last year.
Many of the new models are priced at the top-end, which suggests they’re still holding onto their strategy of selling a lower volume of higher-margin vehicles.
Merc’s CFO, Harald Wilhelm, said: "The strategy of value over volume remains in place - it has not been abandoned.”
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They will also localize more production in China and the US - thus protecting themselves from rising trade tensions.
This includes threats from President Donald Trump of a 25% tariff on all vehicle imports from April.
This is already on top of a 30% slump in earnings in 2024, and a 40% slump in its cars division - while this year they expect a rate of return in its car division of just 6-8%.
Mercedes is not the only major car brand in Europe struggling, as their German rivals Volkswagen, along with other carmakers and even component makers, announced cuts as executives warn the region's energy and labour costs have become uncompetitive.
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This comes days after Merc's CEO bullishly reminded President Trump how much the luxury car brand has invested in the US in an impassioned message.
CEO, Ola Kallenius, told reporters last week: "We're also an American company. Yes, we have our headquarters in Germany and we have European origins, but we feel American.
“I myself have spent six years of my Mercedes career in the United States too.
“My children were born in the United States. I feel deeply, deeply connected to the US.
“We are prepared to continue to invest billions, and we want to grow our footprint in the United States.
“So we are committed. A little-known fact, we are one of the major industrial exporters out of the United States.
“Two-thirds of the vehicles that we make in our Tuscaloosa plant actually go out into the world, a significant part of them, obviously, to Europe."
These remarks came as the president laid out his plans to hit the automotive industry with 25% tariffs, which could affect the likes of General Motors and Ford, as well as overseas brands such as Mercedes.
According to a report by Yahoo Finance, Merc sold 374,000 vehicles in the US last year - with more than half of those imported.
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Indeed, around 13% of German car exports go to the US, more than to any other country.
So far, tariffs of 25% on all imported steel have been levied, as well as a 10% tariff on Chinese imports on top of existing duties.
How to save money at the mechanic
THERE are several services offered by mechanics that drivers should never pay for, according to a car expert.
Ron Krauch, an automotive writer, warned drivers not to trust everything they hear in the shop in an exclusive conversation with The U.S. Sun.
He said it's important for vehicle owners to recognize the difference between their car's manufacturer's service schedule and what mechanics are trying to sell.
Any work referred to as a "dealer recommended service" is often an attempt at upselling, Krauch warned.
One of these useless upsells is fuel injecting clearing, which removes built-up dirt and debris from a vehicle's fuel system to improve performance.
"Modern vehicles typically have fuel systems that are designed to stay clean, especially with the use of high-quality gasoline that contains detergents to keep injectors free of deposits," he said.
Drivers should also always say no to engine flushes, as modern vehicles don't need any help cleaning out "sludge or deposits."
"Most modern engines and oils are formulated to stay clean, and if you regularly change your oil on schedule, you shouldn’t need this service," he said.
And finally, no one should spend extra getting a premium oil change.
"Shops often upsell customers to synthetic or high-performance oils - even if the vehicle’s manufacturer doesn’t require them," Krauch said.
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