Posted 10/26/2023, 7:53:00 AM
Mercedes Hit by EV Price Wars and Parts Shortages, Sees Lower Profit Despite Solid Q3 Earnings
- Mercedes says electric vehicle (EV) market is "brutal" with heavy price cuts and supply chain issues, will likely hit lower end of profit forecast
- Operating profit down 6.8% to 4.8 billion euros in Q3 due to pricing competition, supply chain costs, and foreign exchange headwinds
- Could improve combustion engine returns if EV margins stay lower than expected
- Q3 earnings before interest and tax (EBIT) slightly above expectations at 4.8 billion euros
- Full-year car sales target unchanged despite 4% Q3 deliveries drop caused by model changeovers and parts shortages