Mercedes to step up cost cuts after earnings halve

Mercedes-Benz reported a 50% drop in third-quarter earnings, largely due to weak demand in China and intense competition, impacting its luxury models, especially the S-Class.

The company revised its profit margin target downward twice, with CFO Harald Wilhelm announcing plans for deeper cost cuts. Despite challenges, Mercedes will continue its "value over volume" approach, avoiding price reductions.

CEO Ola Kaellenius attributed the challenges to China’s economic issues and changing consumer preferences.

Meanwhile, Mercedes opposes EU tariffs on Chinese EV imports, seeking a delay to prevent potential retaliation affecting the China-reliant European auto industry.