German media: Mercedes-Benz company's profit fell by 30% year-on-year in the third quarter of this year
Due to poor sales in the Chinese market and the U.S. initiating tariff policies, as well as the company providing severance packages to departing employees, Mercedes-Benz Automotive Company's profit dropped sharply by nearly 30% in the third quarter of this year.
The third-quarter net profit of Germany's automotive giant Mercedes-Benz fell from 1.71 billion euros to 1.19 billion euros, a decrease of about 31% compared to the same period last year.
During the same period, the company's total revenue was 32.1 billion euros, a decrease of 7% compared to the previous year. The region with the largest decline in revenue was the Chinese market, with sales falling by 26.9%.
Mercedes-Benz stated that the significant drop in sales in the Chinese market and the U.S. tariff policy both had negative impacts. The sales volume of complete vehicles in the Chinese and American markets fell by 12% year-on-year in the third quarter of this year.
In addition, the staff reduction plan implemented since spring also increased certain costs: the layoffs in Germany and overseas cost-saving measures amounted to approximately 876 million euros. The company offered voluntary departure compensation schemes to about 40,000 non-production department employees in Germany, and it is reported that thousands have chosen this scheme. In the second quarter of this year, Mercedes-Benz provided about 400 million euros in severance compensation for voluntary departures.
Mercedes-Benz CEO Ola Källenius said that the quarterly performance was basically in line with the annual forecast. This automobile manufacturer, headquartered in Stuttgart, Germany, had previously announced that its profit in the first half of the year had fallen by more than half, from about 6.1 billion euros to about 2.7 billion euros.
Source: DW
Original: www.toutiao.com/article/1847325289066506/
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