Mercedes-Benz Stock Plummets Due to Poor Sales in China
Business
Mercedes-Benz shares on the Frankfurt Stock Exchange have plunged by 8.4%, hitting their lowest level in four years, according to Bloomberg. The sharp drop is attributed to declining sales in the Chinese market.
Analysts point to poor sales of S-Class and Maybach sedans in China, which has forced the company to lower its profit forecast. The expected profit margin has dropped from 11% to 7.5-8.5%, with company representatives stating that earnings before interest and taxes will be "significantly lower" than the previous year.
Additionally, it was revealed that Chinese automaker BYD has gained control over Mercedes-Benz's plant in China, underscoring the diminishing presence of foreign automakers in the world’s largest car market. In Europe, automakers like Mercedes-Benz are also facing production challenges, threatening thousands of jobs across the industry.
Additionally, it was revealed that Chinese automaker BYD has gained control over Mercedes-Benz's plant in China, underscoring the diminishing presence of foreign automakers in the world’s largest car market. In Europe, automakers like Mercedes-Benz are also facing production challenges, threatening thousands of jobs across the industry.
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