Mercedes-Benz on Thursday announced further cost-cutting and more petrol and diesel cars than EVs in its new product range, in a bid to revive margins as the company braces for a sharp drop in earnings in 2025.

The luxury-car maker aims to slash production costs by 10% over the next couple of years, including shifting some manufacturing from Germany to lower-cost countries.

Mercedes-Benz stock fell in overseas trading after the German auto maker reported better-than-expected earnings but gave an outlook that doesn’t inspire the passion drivers might feel for a 300 SLR sports car.

Mercedes-Benz has launched plans to boost returns in its car division to 10% or higher, the German luxury automaker said on Thursday, after reporting a 40.5% slump in 2024 earnings. The carmaker, whose sales took a battering in its key markets of China and Germany last year,

After the first VAN.EA models debut in 2026, they will be joined by internal combustion equivalents based on the mechanically similar VAN.CA platform

Mercedes-Benz has warned that its profits will be “significantly” lower this year as the German carmaker battles a steep drop in demand. The warning came as the Stuttgart-based company reported that net profits fell 28 per cent to €10.

Mercedes-Benz on Thursday launched a fresh cost-cutting plan to revive sales and margins and battle stiff competition as the German carmaker forecast a big drop in earnings in 2025. Its car division reported a 40% slump in 2024 earnings as sales in the key Chinese and German markets took a battering.