Mercedes-Benz Group (MBGn.DE) on Friday warned of lower earnings this year amid economic uncertainty, and said it would look to sell more vehicles directly in major markets such as Britain and Germany as it continues to target high margins on flat volume.
The premium automaker expects a lower adjusted return of 12%-14% on sales for its cars division in 2023 and group earnings slightly below 2022, even though sales at the Mercedes-Benz Cars business are expected at the same level.
It pointed to sluggish demand in Europe, a slow rebound from coronavirus restrictions in China, high energy and raw material costs and inflationary pressures to justify the forecast, adding prospects were better in the United States.
Sales of top-end vehicles, whose high margins have so far enabled the carmaker to keep profits up despite rising costs, are still expected to rise slightly on last year.
The German company’s forecast chimes with warnings across the industry of a challenging year ahead, with Germany’s autos association predicting car sales this year will hit around 74 million vehicles globally, up 4% from last year but still 8% below pre-pandemic levels.
This report’s information was first seen on REUTERS; to read more, click this link.
You must be logged in to post a comment.