Mercedes Q3 Earnings Fall Short Amid US-China EV Trade Tensions
Mercedes-Benz reported third-quarter earnings below Wall Street expectations, attributing the shortfall to escalating trade tensions between the U.S. and China. The automaker specifically cited the 15% U.S. import tariff on European vehicles implemented September 1 and softening demand in China as primary headwinds.
When adjusted for €1.3 billion in one-time charges related to workforce reductions in Germany, earnings still declined 17% year-over-year. Despite these challenges, the company maintained its full-year guidance, buoyed by resilient performance in its luxury vehicle segment.
CEO Ola Källenius acknowledged the tariff impacts while outlining strategic countermeasures. "We are very aware of the challenges," Källenius told analysts, emphasizing efficiency improvements and new model launches. The trade environment has forced Mercedes and peers like BMW and Volkswagen to reconsider U.S. production strategies.
