Mercedes-Benz announced that it will stay away from the discount race
German automobile manufacturer Mercedes-Benz announced that it will maintain high price levels and stay away from entering the discount race in the automobile industry.
Mercedes-Benz announced that it will stay away from entering the discount race, saying that it will maintain high price levels for its luxury cars due to bottlenecks in the supply chain.
The German luxury automaker said its earnings before interest and taxes in the first quarter fell 30 percent to 3.86 billion euros ($4.13 billion), compared with LSEG’s estimate of 3.87 billion.
The company stated that the sales return in the group’s Mercedes-Benz Automobile division decreased from 14.9 percent to 9.6 percent compared to the previous year, and vehicle sales decreased by 8 percent to 462,978. On the other hand, it was noted that the group’s free cash flow from its industrial businesses increased by 3.2 percent and reached 2.23 billion euros.
Chief Financial Officer Harald Wilhelm confirmed the group’s 2024 outlook for stable sales, saying the group remained “cautious about the global macroeconomic and geopolitical outlook”.