Mercedes-Benz Forecasts Improved Margin for Passenger Car Division
In a recent investor briefing, Mercedes-Benz projected an adjusted margin for its passenger car division exceeding the company's previous forecast of 6%-7% for Q4 2024. The announcement was made by analysts from Bernstein Research and Jefferies.
Analysts anticipate Mercedes-Benz will meet its full-year margin target of 7.5%-8.5%. Executives expressed satisfaction with the division's Q4 performance in China but expressed caution about the market's long-term outlook due to excess capacity driving down prices.
Mercedes-Benz hosted an investor call ahead of its annual results announcement, which was not open to the press due to a closed period on company information. The automaker declined to comment outside of business hours.
Previously, on January 10, Mercedes-Benz reported a 3% decline in core car sales for the full year 2024 but noted a 1% increase in Q4, driven by strong sales of high-end vehicles. The company adjusted its profit margin target twice in 2024 and announced plans to increase cost-cutting measures, citing the weakening Chinese car market's impact on profitability.