Mercedes-Benz (OTC:MBGAF) has unveiled an aggressive cost-cutting strategy to boost profitability in its car division, targeting a 10%+ return on sales despite a 40.5% drop in 2024 earnings.

Key Developments

1️⃣ Slump in 2024 Earnings

📉 Return on Sales (2024): 8.1% (vs. 12.6% in 2023)
📉 Total Sales: 1.98M vehicles (- lower expectations for 2025)
📉 Dividend Cut: €4.30/share (down from €5.30 in 2023)

2️⃣ 2027 Cost-Cutting Plan

✅ Reduce Production Costs by 10%
✅ Launch Dozens of New Models
✅ Streamline Operations for Higher Margins

3️⃣ Weaker 2025 Outlook

🔸 Expected returns: 6%-8% for car division.
🔸 Lower unit sales expected (<1.98M cars).
🔸 Labour representatives push for minimum 2M sales to sustain capacity.

Track Mercedes-Benz Financial Performance

🔹 Balance Sheet API - Assess Mercedes' financial health.
🔹 Earnings Calendar API - Stay updated on upcoming earnings reports.

Outlook

🚗 Bullish Case: If cost-cutting succeeds and China/Germany demand stabilizes, margins could rebound.
📉 Bearish Case: Declining sales and macroeconomic risks could drag profits lower.

Mercedes-Benz is in restructuring mode, with a leaner cost structure key to its future.