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Mercedes-Benz Faces 57% Profit Drop Amid Competitive Challenges

2/12/2026

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Summary

Story summary

Mercedes-Benz reported a 57% drop in operating profit for 2025 to €5.8 billion.
Intense competition in China, €1 billion in tariff costs, and foreign exchange challenges contributed to the decline.
Mercedes-Benz projects a 2026 operating margin of 3% to 5% and expects Group revenue to be flat at €132.21 billion.
The company plans to launch over 40 new models by 2027 and to boost efficiency through cost-cutting and production changes.

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Story summary

Mercedes-Benz reported a 57% drop in operating profit for 2025 to €5.8 billion.
Intense competition in China, €1 billion in tariff costs, and foreign exchange challenges contributed to the decline.
Mercedes-Benz projects a 2026 operating margin of 3% to 5% and expects Group revenue to be flat at €132.21 billion.
The company plans to launch over 40 new models by 2027 and to boost efficiency through cost-cutting and production changes.