Mercedes-Benz eyes more direct sales amid earnings pressure

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Mercedes-Benz Group on Friday warned of lower earnings this year amid economic uncertainty, and said it would look to sell more vehicles directly in major markets such as Britain and Germany as it continues to target high margins on flat volume.

The German company's forecast chimes with warnings across the industry of a challenging year ahead, with Germany's autos association predicting car sales this year will hit around 74 million vehicles globally, up 4% from last year but still 8% below pre-pandemic levels.

Mercedes-Benz pledged in 2020 to cut fixed costs, capital expenditure and research and development spending by more than 20% by 2025 from 2019 levels, a target it is still on track to meet despite inflation, Wilhelm said. Selling directly saves costs for the company and removes concerns for customers that they could get a better price at another dealer, he added.

Mercedes-Benz hit its forecast for a 13%-15% adjusted return on sales in the cars division, reporting a 14.6% margin for 2022 and a 28% rise in earnings across the group to 20.5 billion euros .

 

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Dunno who is buying luxury items. The whole world is broke

But they won't build the vehicle I ordered in August 2021!! 😡 MercedesBenz

I love this car

Why doesn’t the media publish that Mercedes is a company started by Nazis? I used to want one until I found this out. Why do so many companies have Nazi ties? Who thought it was ok for these companies to continue on? Addis, puma bmw Mercedes who know who else 🤷‍♀️

The premium carmaker should pay more attention to plug-in hybrid (phev). Alternatives to GLE 550e should be supplied.

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Mercedes-Benz flags market uncertainty despite 2022 earnings boostMercedes-Benz Group beat analysts' estimate with an annual earnings of 20.5 billion euros ($21.80 billion) and a stronger revenue, the premium car maker said on Friday, but warned of lower earnings this year due to economic uncertainty.
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