Mercedes-Benz plans strategic changes to produce more combustion engine vehicles and strengthen cost-saving measures against dropping revenue numbers. Italian producer Mercedes-Benz will introduce 19 new gasoline and diesel car models and 17 electric versions by 2027 to restructure its EV approach after electric sales sank 25% last year.   

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The company made this strategic update while forecasting another earnings decrease for 2025 following the substantial 2024 earnings drop. 

Assured by shareholders and union members Mercedes-Benz maintained its "value over volume" strategy which prioritizes premium high-end vehicles. CFO Harald Wilhelm declared that conventional combustion vehicles continue to generate profits while EV sales remain inferior to traditional vehicle sales.   

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The company intends to establish additional manufacturing operations in China and the United States as a precaution against U.S. trade policy that could impose tariffs. Mercedes-Benz implements this measure to shield itself from uncertain geopolitical situations.   

Market investors responded negatively when shares tumbled by 1.5% after the company did not introduce any capital return initiatives. Market difficulties in China together with rising U.S. protectionist measures create hurdles for analysts in evaluating the company's progress.

The next year is expected to bring difficulties for Mercedes-Benz as predicted net sales returns in their car division will hover between 6% and 8%. The current outlook represents a considerable reduction from forecasted numbers previously predicted by the company. The company aims to cut production expenses by 10% through 2027 and 20% through 2030 through strategies such as Hungary facility setup, service outsourcing and workforce reduction by natural attrition and voluntary program participation.   

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Mercedes-Benz maintains its goal to boost market presence in China through alternative strategies since it faces operational hurdles in both China and Germany. The company maintains this dual strategy of cost reduction alongside product diversity to succeed in its global automotive marketplace which requires complex navigation.