Mercedes-Benz Cuts Sales Forecast as Auto Division Profit Drops

Mercedes-Benz has lowered its sales outlook for the year and reported a significant profit decline in its core car-making division, the latest warning from Germany's flagship auto industry. The company now expects to sell fewer vehicles in 2024 than it did last year, citing weaker demand in key markets and higher costs. The profit figure for the automotive segment fell sharply compared to the same period last year, although the overall group profit was boosted by strong performance in its financial services and mobility divisions. The revised forecast comes as the broader car industry struggles with the shift to electric vehicles, tough competition from Chinese manufacturers, and a sluggish global economy. Investors reacted cautiously, sending shares modestly lower. The news affects Mercedes' tens of thousands of workers, its supply chain, and dealers, who now face lower volumes. Looking ahead, analysts expect the company to focus on cost cuts and new electric models to regain momentum. The question remains whether the luxury carmaker can protect its margins while accelerating electrification.