market of heavy price cuts and supply chain issues meant it would likely hit the lower end of its 12-14% adjusted return on sales forecast for the cars division, as third-quarter earnings fell.
With some traditional players selling battery electric vehicles below the level of internal combustion engine cars despite their higher production costs,"this is a pretty brutal space," Harald Wilhelm said. Discounts offered on some models in Germany in the fourth quarter did not represent an overall shift in the carmaker's pricing strategy of keeping prices high to focus on boosting margins over volume, Wilhelm said.
But higher inflation, a 329-million-euro headwind from foreign exchange and supply chain-related costs dampened third-quarter earnings, the company said, echoingMercedes-Benz earlier this month reported a 4% drop in overall third-quarter sales, with top-end sales down 11%, partly caused by model changeovers and a shortage in 48-volt systems supplied by Bosch.
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