Mercedes shares declined in Germany on Thursday after the struggling automaker reported a nearly one-third drop in 2024 profits, pressured by softening demand in China and sluggish electric vehicle sales. Analysts at Bernstein characterized the 2025 outlook for passenger cars as “predictably weak.”  Here’s a snapshot of the 2024 fiscal year financial results. The focus is on deteriorating EBIT margin (courtesy of Bloomberg):   Mercedes announced plans to slash 10% of production costs through 2027 and provided a dismal outlook for this year. It expects lower sales and guided profit margins lower than Wall Street’s expectations… 2025 Forecast: “To ensure the company’s future competitiveness in an increasingly uncertain world, we are taking steps to make the company leaner, faster and stronger,” CEO Ola Kallenius wrote in a statement. With CEO Kallenius at the helm, Mercedes has prioritized producing higher-end vehicles while shifting away from entry-level models. There was a time—many years ago—when the automaker focused on building cars for executives. However, weak demand for Maybachs and G-Wagons in China and other markets has pressured this strategy. Kallenius expects margins margins upwards of 10% by 2027. Like many others in Europe, automakers have been pressured by weakening global demand, a dismal economic environment in Germany, and Chinese competitors such as BYD. At the […]