Mercedes-Benz expects earnings to improve significantly this year, boosted by new model launches and comprehensive efforts within the group to strengthen competitiveness. Although car sales and revenues are forecast to remain at 2025 levels, the company is optimistic about its profitability.
The German luxury car manufacturer plans to launch over 40 new models by 2027. The company said on Thursday that the order books are full well into the second half of 2026, and production is running in three shifts to meet high demand. Last year, the company unveiled plans to increase efficiency through a series of measures that include job cuts and moving some production from Germany to lower-cost countries such as Hungary.
These moves come at a time when European car manufacturers are facing numerous challenges. According to The Wall Street Journal, the industry is grappling with faltering demand for electric vehicles, a changing trade landscape following the introduction of tariffs by US President Trump and intense competition in the key Chinese market, forcing companies to urgently cut costs and improve competitiveness.
Mercedes confirmed that it expects car sales this year to remain at 2025 levels, while adjusted margins in the automotive unit are forecast to be in the range of 3 to 5 percent, compared with 5 percent in 2025. The group’s revenues in 2026 will also be at the level of 2025, when they amounted to 132.21 billion euros. However, the group’s earnings before interest and taxes (EBIT) are expected to be significantly above last year’s level of EUR 5.82 billion.