In the automotive segment, volumes are down 8% over the first nine months of the year, with a marked deterioration in the entry-level and electric vehicle segments, which are down 12% and 13% respectively.
The elephant in the room is, of course, the Chinese market—one-third of total car deliveries—where volumes plummeted 18%. They are also down 10% in North America, due to the impact of tariffs. Europe is a bit surprising, however, where volumes are resisting year on year.
The situation is no better in the van and financing segments. As a result, consolidated operating profit fell to €4.3bn, compared with €10.4bn at the same time last year, while net profit halved.
It is fortunate that the group is defending a good balance sheet in this harsh economic climate, which seems to have no end in sight for the moment. It has nevertheless reduced its dividend and suspended its share buyback plan for the last nine months; however, this was due to resume in November, albeit on a more modest scale.
Affected by the same problems, BMW warned earlier this month that it would have to reduce its profit targets for this year. Its results, due on November 5, will undoubtedly show a less pronounced deterioration than those of Mercedes-Benz, however.
Engaged in yet another restructuring plan since 2019, the Stuttgart-based manufacturer's profits are expected to return to their level of fifteen years ago by 2025. It is therefore hardly surprising that its share price has also returned to the level it was at at that time, especially since the capital has remained divided into a more or less equivalent number of shares in the meantime.
