Mercedes-Benz (OTC:MBGAF) has unveiled an aggressive cost-cutting strategy to boost profitability in its car division, targeting a 10%+ return on sales despite a 40.5% drop in 2024 earnings.
\ud83d\udcc9 Return on Sales (2024): 8.1% (vs. 12.6% in 2023)
\ud83d\udcc9 Total Sales: 1.98M vehicles (- lower expectations for 2025)
\ud83d\udcc9 Dividend Cut: €4.30/share (down from €5.30 in 2023)
\u2705 Reduce Production Costs by 10%
\u2705 Launch Dozens of New Models
\u2705 Streamline Operations for Higher Margins
\ud83d\udd38 Expected returns: 6%-8% for car division.
\ud83d\udd38 Lower unit sales expected (<1.98M cars).
\ud83d\udd38 Labour representatives push for minimum 2M sales to sustain capacity.
\ud83d\udd39 Balance Sheet API – Assess Mercedes’ financial health.
\ud83d\udd39 Earnings Calendar API – Stay updated on upcoming earnings reports.
\ud83d\ude97 Bullish Case: If cost-cutting succeeds and China/Germany demand stabilizes, margins could rebound.
\ud83d\udcc9 Bearish Case: Declining sales and macroeconomic risks could drag profits lower.
Mercedes-Benz is in restructuring mode, with a leaner cost structure key to its future.
