Mercedes-Benz has secured its place in line, and the European automotive industry's troubles are far from over.
Mercedes-Benz’ second-quarter operating profit increased thanks to cost reductions and strong performance in the van and financing segments. However, profitability in the passenger car segment continued to decline, and sales in China fell by 30 percent. As a result, the company has revised down its volume and revenue forecasts for the year. BMW and Volkswagen have also revised their forecasts in recent weeks.
Thanks to cost reductions and the strong performance of the van and financing divisions, Mercedes-Benz’s operating profit increased in the second quarter. However, the profitability of the passenger car business continued to decline, with sales falling by 30 percent in China, prompting management to revise down its forecasts for this year’s volume and revenue. Mercedes-Benz is not alone; in recent weeks, BMW and Volkswagen have also lowered their forecasts for this year.
