The profit of Mercedes-Benz dropped sharply in the third quarter of 2025, falling by almost one-third compared to the same period last year. According to the company, the decline was mainly driven by weaker sales, additional costs related to U.S. import tariffs, and expenses for workforce reductions. Between July and September, the German automaker’s net income fell by more than 30 percent to 1.2 billion euros, reports Baltimore Chronicle citing the official Mercedes-Benz financial statement.
Over the first nine months of 2025, Mercedes-Benz’s net profit fell by half year-on-year to 3.9 billion euros. The company’s financial results were heavily affected by restructuring and downsizing costs. Including all special items — such as expenses from the voluntary redundancy program — the operating profit (EBIT) plunged by 70 percent to 750 million euros in the third quarter. Adjusted EBIT, excluding one-time costs, stood at 2.1 billion euros. Total extraordinary expenses, including legal costs, amounted to around 1.35 billion euros.
Revenue also declined by seven percent to 32.1 billion euros. CEO Ola Källenius stated that these results are in line with the company’s full-year forecast. Earlier, Mercedes-Benz had projected a significant drop in sales, revenue, and pre-tax profit. The profitability of its core passenger car division remained at 4.8 percent, compared to 4.7 percent a year earlier, which is at the lower end of the company’s expected range of 4 to 6 percent.
Mercedes-Benz plans to overcome the ongoing crisis through cost-cutting measures and an expanded model lineup. The DAX-listed company aims to reduce production expenses by 10 percent by 2027, along with lower fixed and material costs. As part of its restructuring, around 40,000 employees in Germany who are not directly involved in manufacturing were offered voluntary severance packages. In the third quarter alone, restructuring costs reached 876 million euros, following more than 400 million euros in the previous quarter.
Sales figures continued to decline in key markets, including China and the United States. From July to September, the company delivered 525,300 cars and vans to dealers — a 12 percent decrease compared to the same period last year. Over the first nine months of 2025, total sales dropped by nine percent to roughly 1.6 million vehicles. In 2024, the automaker had already recorded a 4 percent decline, selling just under 2.4 million units.
Like Mercedes-Benz, other German carmakers are also facing mounting difficulties, especially in China, where domestic electric vehicle manufacturers are rapidly gaining market share. This shift has particularly affected the premium and luxury segments, in which Mercedes-Benz traditionally holds strong positions. The company emphasized that market conditions in China remain tense, with foreign brands experiencing notable sales losses in the high-end category.
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