Short Torque

Mercedes-Benz hit hard by weakening demand

Mercedes-Benz said on Thursday it plans hefty cost cuts after its 2024 profits plunged by almost a third amid a slump in China and weak electric car sales, as Germany's auto sector reels. The German auto giant's net profit fell 28 percent from the previous year to 10.4 billion euros ($10.8 billion), while revenues also slid about 4 percent to 145.6 billion euros. The group announced plans to slash production costs by a tenth by 2027 and also gave a bleak outlook for this year, saying it expected lower sales and leaner profit margins. "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 Kaellenius said in a statement. It was the latest bad news from one of Germany's car titans, which have been hit hard by a stuttering shift to electric vehicles, fierce competition in China from domestic rivals and weakening demand elsewhere.

New vehicle rollouts boost profits for Renault