Mercedes-Benz Sales Plummet in China and USA, Stock Drops
Mercedes-Benz has reported a significant drop in sales, particularly in key markets like China and the USA, sparking investor uncertainty. The company's stock has fallen, and analysts advise caution. Full quarterly results are due on October 29.
In the third quarter, Mercedes-Benz sold 12% fewer passenger cars and vans worldwide compared to the same period last year. The decline was most pronounced in China, with a 27% decrease, and in the USA, where sales fell by 17%. The Mercedes-Benz Cars division saw a 12% decrease in sales, totalling 441,500 vehicles.
Despite the sales weakness, Mercedes-Benz is expected to report profitability in its full quarterly results on October 29. Meanwhile, electric vehicle sales increased by 9%. However, analysts warn of significant challenges, with a sharp decline in sales and a 14.56% drop in stock value this year. While some premium segments like the G-Class and AMG models show growth, the overall outlook is negative, and investors are advised to exercise caution.
The Chinese stock market, in particular, is a major concern due to intense local competition. Mercedes-Benz stock dropped by over 3.5% following the release of the sales figures. The company has scheduled a Pre-Close Call for analysts on October 9, where management will discuss the crisis and present a turnaround plan. In contrast, rival BMW is experiencing growth.
Mercedes-Benz's significant sales decline, particularly in the Chinese and American stock markets, has raised concerns among investors. The company's stock has fallen, and analysts advise caution. Full quarterly results are due on October 29, and management will present a turnaround plan on October 9. Meanwhile, rival BMW continues to grow.
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