Mercedes’ third-quarter revenue and profit fell in what it called a “subdued market environment marked by intense price competition, particularly in the electric vehicle segment.”
The German luxury automaker’s passenger car sales dropped about 5%, it said in part due to a supplier shortage.
Earnings before interest and taxes fell 7% to $5.1 billion as revenue fell more than 1% to $39.2 billion.
The company said increased net pricing of cars and greater premium van sales volume partially balanced out inflation, supply costs and currency factors.
Mercedes stuck with its prior full-year guidance despite the results, though Reuters reported that Chief Financial Officer Harald Wilhelm called the EV market “brutal” and that he could “hardly imagine” the current environment is sustainable, with some carmakers selling EVs for less than gas-powered models despite them being more expensive to produce.
Multiple automakers have said recently they’re slowing their earlier accelerated plans to transition to all-EV lineups as demand has failed to meet expectations.
Originally posted on Auto Dealer Today