The German car giant intends to enhance its operations due to setbacks. French Renault rolls better.
German car giant Mercedes-Benz’s operating profit decreased by almost a third in 2024.
Mercedes-Benz’s operating profit last year was approximately EUR 10.4 billion, 28 % less than in 2023.
According to the car giant, the decline in profits was due to the decline in China’s trade and the slowdown in electric car sales.
According to Mercedes-Benz, the sales of the company’s electric cars fell 23 percent last year compared to 2023.
Mercedes-Benz intends to react to setbacks by streamlining its operations. The company plans to reduce its production costs by 10 % by 2027.
Big car manufacturers in Germany have suffered from difficulty in recent years. For example, in the major Chinese market, European manufacturers face rocky competition from the country’s own rising car manufacturers, such as BYD.
Mercedes-Benz’s Chinese sales fell 7 % last year compared to 2023.
In France rolls
French Renault, on the other hand, goes upwind as European colleagues face difficulties.
According to Renault, the company’s net sales last year increased by 7.4 per cent from the previous year and was EUR 56.2 billion.
According to the company, its operating margin was record -breaking last year, 7.6 per cent. Renault CFO Thierry Pieton According to the company’s downwind, the company is due to new car models and efficient expenses.
Source: AFP