Mercedes-Benz Group MBGAF pulled its 2025 earnings guidance, citing uncertainty over U.S. President Donald Trump‘s tariffs.
What Happened: At the earnings calls, the company’s Chief Financial Officer Harald Wilhelm shared that due to the uncertainty over the Trump administration’s tariffs, earnings guidance for 2025 “cannot be provided today with a reliable degree of certainty,” according to a Reuters report.
The German luxury automaker has been grappling with a disappointing quarter, where profit margins declined to 7.3% from 9% around the same time last year. The company’s cumulative sales also fell 7%, as sales declined in China and Europe by 10%.
The report also suggests that Mercedes-Benz CEO CEO Ola Källenius shared with analysts that “constructive” talks were ongoing with the Trump administration to bolster the German brand’s presence in the U.S., but couldn’t provide other details.
Why It Matters: The news comes in as the automotive industry in the U.S. is battling with uncertainty over the auto tariffs. Luxury car buyers could pay significantly more for the vehicles as high-end brands could hike vehicle prices by five figures, analysts said.
Mercedes is also re-evaluating its line-up in the country, and could potentially pull some of the entry-level models from its U.S. showrooms.
The company recently saw its EV sales go down in the U.S., even as the sector as a whole experienced growth in Q1 2025, adding to the German automaker’s woes.
Elsewhere, Mercedes-Benz Mobility, a part of the Mercedes-Benz Group, also recently sold the Freenow ride-hailing app, operating primarily in over 9 countries in Europe, to Lyft, Inc. LYFT in a $197 million cash deal.
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