Tag Archives: Mercedes-Benz

News

Mercedes-Benz Holds Strong in Q2, Despite Falling Sales and Tariff Turmoil

Mercedes-Benz Group AG demonstrated resilience in the face of global economic headwinds, reporting solid financial performance for the second quarter of 2025 despite rising tariffs and a dynamic market environment. While the auto industry contends with geopolitical tensions and shifting trade policies, Mercedes-Benz remains focused on intelligent product development and operational efficiency.

“We achieved robust financial results in the second quarter given the dynamic business environment,” said Ola Källenius, CEO of Mercedes-Benz Group AG. “The best response is to stay on course to deliver desirable and intelligent products, while keeping a tight grip on costs.”

The numbers reinforce that strategy. The Group posted a free cash flow of €1.9 billion in its industrial business for Q2, up from €1.6 billion in Q2 2024. Net liquidity rose to €30.8 billion, reflecting careful financial stewardship amidst volatility. However, group EBIT was significantly impacted by €715 million in one-off adjustments related to efficiency programs and M&A transactions, notably including the sale of operations in Argentina.

Mercedes-Benz Cars: Sales Dip, Hybrids Rise

Mercedes-Benz Cars faced a complex quarter. With unit sales down 9% year-on-year to 453,700 vehicles, the brand was clearly not immune to a cooling Chinese market and the pressure of new tariffs. Still, the company’s strategy of stock management and cost controls helped deliver an adjusted EBIT margin of 5.1% in Q2 and 6.2% for the first half of 2025. Excluding tariff effects, the return on sales would have stood at 6.6%.

Plug-in hybrid (PHEV) demand proved a bright spot, surging 34% in the quarter. Combined xEV sales rose 4%, indicating continued consumer interest in electrification, even as full EV adoption faces regulatory and infrastructure hurdles in certain markets.

Top-end vehicles — a core pillar of the Mercedes luxury brand identity — accounted for 14.3% of overall car sales. Yet the softer pricing environment and lower unit sales dented profitability, leading the company to revise its full-year RoS guidance to between 4% and 6%.

Mercedes-Benz Vans: Electric Uptick in a Tough Market

Mercedes-Benz Vans also saw sales volume decline 10% year-over-year in a competitive market, delivering 93,400 units in Q2. Nonetheless, adjusted EBIT margins remained strong at 10.4% for the quarter and 11.0% in the first half, bolstered by a 32% jump in electric van sales.

Looking ahead, the vans division is expected to outperform its first-half results in H2, but full-year sales are projected to fall significantly below 2024 levels. The revised guidance sets the return on sales between 8% and 10%.

Mercedes-Benz Mobility: Steady and Stable

The Group’s financial services arm, Mercedes-Benz Mobility, posted an adjusted return on equity of 8.9% in Q2 and 8.8% for H1, slightly ahead of the previous year. Efficient asset management and gains from financial investments helped offset a challenging lending environment and margin compression.

2025 Outlook: Tariff Pressure and Strategic Investments

Despite a solid first half, Mercedes-Benz has lowered its full-year outlook across key metrics, primarily due to tariff implications and anticipated lower unit sales at both Cars and Vans divisions.

  • Mercedes-Benz Cars: Full-year unit sales are now expected to fall significantly below the 1.98 million recorded in 2024. Adjusted RoS is guided at 4–6%, down from 8.1% last year.
  • Mercedes-Benz Vans: Expected to finish the year well below 2024’s 406,000 units, with a revised RoS forecast of 8–10%.
  • xEV Share: Electrified vehicle share is projected to increase to 20–22% for Cars (up from 19%) and 8–10% for Vans (up from 5%).
  • Investments: In contrast to the sales outlook, investments in property, plant, and equipment are set to rise significantly, particularly for Mercedes-Benz Cars and Vans. R&D spending will remain at the prior-year level for Cars and increase significantly for Vans.

Strategic Focus: Next Level Performance

Källenius emphasized that the company’s Next Level Performance program goes beyond cost-cutting. It aims to build long-term resilience through operational agility and a sharper focus on future product development.

“By using our global production footprint intelligently and executing our Next Level Performance programme, we’re adapting to new geopolitical realities,” said Källenius.

As the automotive world contends with shifting trade dynamics, evolving customer expectations, and accelerating electrification, Mercedes-Benz is staying the course — disciplined in execution, focused on premium innovation, and increasingly selective in where and how it competes globally.

Source: Mercedes-Benz

NEW CARS

Mercedes-Benz Begins New Era with All-new GLC

Mercedes-Benz is redefining its presence in the electric era with a commanding showcase at IAA MOBILITY 2025, where it unveils the latest jewel in its crown: the all-new GLC with EQ Technology. As part of the brand’s most ambitious product launch campaign to date, the fully electric GLC takes center stage at both the “Open Space” in Munich’s iconic Apothekenhof and within the exhibition halls of Messe München.

With its sleek silhouette and unmistakable GLC DNA, the electric variant represents more than just an evolution—it marks a transformation. Purpose-built and unmistakably premium, the new GLC with EQ Technology is the first in a wave of upcoming models that will carry the elevated Mercedes-Benz design philosophy into an all-electric future. It combines intelligent efficiency, next-gen digital integration, and the brand’s hallmark refinement—delivering a luxury SUV experience without compromise.

An Immersive Mobility Showcase

The Mercedes-Benz Pavilion at the Apothekenhof serves as a living gallery of innovation. Here, visitors can interact with the brand’s latest advancements—from advanced driver assistance systems (ADAS) to the new MB.DRIVE ASSIST PRO point-to-point automation and the highly intuitive Intelligent Cockpit, complete with a suite of Digital Extras.

The immersive display doesn’t stop at the GLC. Making their show premieres are the all-new CLA family, offered with fully electric and high-tech hybrid drivetrains. Among them, the CLA Shooting Brake stands out as Mercedes-Benz’s first all-electric estate model—merging practicality with progressive design.

Adding a note of mystery and grandeur, Mercedes also lifts the veil—just slightly—on its upcoming VLE Grand Limousine. Though cloaked in camouflage, this all-electric luxury flagship hints at a bold future for the brand’s upper echelon, set to arrive on roads in 2026.

Future Mobility, Experienced Today

As part of the IAA Experience, Mercedes-Benz brings mobility innovation directly to the streets of Munich. A fleet of 30 electric and electrified vehicles is available for ride-alongs from the Pavilion, offering everyday visitors a chance to witness tomorrow’s technology first-hand.

Select guests can enjoy co-drives in the new CLA equipped with MB.DRIVE ASSIST PRO, experiencing automated mobility in real urban conditions. Meanwhile, tech enthusiasts can get behind the wheel of the EQS or S-Class with DRIVE PILOT, the world’s fastest system for conditionally automated driving, capable of speeds up to 95 km/h under real German road conditions. Mercedes-Benz engineers will be present throughout to explain the intricacies of these revolutionary systems.

The Summit: A Glimpse of What’s Next

Inside Messe München, Mercedes-Benz’s booth in Hall B3 transforms into a hub of cutting-edge automotive engineering. The Innovation Forum will spotlight electric versions of the GLC and CLA Shooting Brake, alongside one of the show’s most buzzworthy highlights: the CONCEPT AMG GT XX.

This stunning high-performance showcar offers the first look at AMG’s electrified future, underpinned by the AMG Electric Architecture (AMG.EA). Combining raw performance with next-gen tech, the GT XX is a tantalizing preview of AMG’s shift toward sustainable speed.

Personalisation Meets Performance

Rounding out the brand’s multifaceted presence is the Studio Odeonsplatz, where visitors can explore Mercedes-Benz’s MANUFAKTUR customisation programme. From hand-picked materials to exclusive finishes, this space highlights the brand’s dedication to individuality, luxury, and craftsmanship.

Mercedes-Benz at IAA MOBILITY 2025: At a Glance

  • World Premiere: All-new GLC with EQ Technology
  • Debuts: Electric CLA Shooting Brake, new CLA family, camouflaged VLE prototype
  • Test Drives: 30-vehicle fleet including EQS, S-Class, and CLA with automated driving tech
  • Highlights: CONCEPT AMG GT XX, MANUFAKTUR customisation exhibit
  • Dates: September 9–14, 2025

As Mercedes-Benz accelerates into its electric future, IAA MOBILITY 2025 proves that the three-pointed star is not only keeping pace—it’s leading the charge.

Source: Mercedes-Benz

News

Mercedes-Benz Vito Turns 30: A Legacy of Versatility and Innovation

Thirty years ago, Mercedes-Benz redefined the midsize van segment with the launch of the Vito. Designed for professionals and built with purpose, the Vito quickly became synonymous with versatility, reliability, and forward-thinking engineering. Today, as it celebrates its 30th anniversary, the Vito remains a pillar of Mercedes-Benz Vans’ lineup — evolving across three generations while staying true to its core: serving the working world, one city block at a time.

A Van Born for Purpose

Launched in 1995, the first-generation Vito introduced an entirely new concept in the 2.6 to 2.8-tonne class. Compact yet capable, it offered a cargo volume of nearly 5 m³, a payload of up to one tonne, and an exterior height under two meters — perfect for squeezing into multistory parking garages. Powered by efficient four-cylinder petrol and diesel engines, the front-wheel-drive platform proved a hit among tradespeople and urban businesses alike, earning the prestigious “Van of the Year” award in 1996.

By 2003, Mercedes-Benz had sold nearly half a million units.

Second Generation: More Power, More Capability

The 2003 second-generation Vito marked a leap forward. Rear-wheel drive became standard across all variants, improving load capacity and road handling. An all-wheel-drive version, a first in its class, further expanded the model’s utility. Buyers could now choose from three lengths, two roof heights, five engine options, and a host of equipment packages — a sign of Mercedes-Benz’s commitment to tailoring the Vito to diverse industries.

In a significant step toward sustainable transport, the Vito E-CELL debuted in 2010. This small-series battery-electric model offered a 130 km range and became a favorite among courier services, paving the way for the fully electric eVito that would follow years later.

Third Generation: Electrification and Advanced Safety

The third-generation Vito, launched in 2014, brought modern styling, more space, and a trio of drivetrain options: front-, rear-, and all-wheel drive. With increased length and a payload capacity of up to 1369 kg, it balanced utility and comfort like never before. Safety also became a standout feature — the Vito Tourer introduced up to eight airbags and innovations like Crosswind Assist, unique in the segment.

2018 saw the launch of the eVito, Mercedes-Benz’s first mass-produced fully electric midsize van. Designed with urban mobility in mind, it offered zero-emissions capability for delivery fleets and commercial shuttle operators.

By 2020, the Vito had embraced further technological enhancements: the OM 654 diesel engine family, 9G-TRONIC automatic gearbox, DISTRONIC distance assist, and AIRMATIC air suspension all elevated the driving experience.

Today’s Vito: Digitally Connected, Electrically Driven

In 2024, Mercedes-Benz gave the Vito a major technology and comfort update. The introduction of the MBUX infotainment system and expanded safety suite — including Active Brake Assist with cross-traffic function and Lane Keeping Assist — aligned the Vito with the brand’s premium passenger car offerings.

The current eVito takes electric mobility to a new level. With a WLTP range of up to 480 km, full connectivity, and a host of digital extras, it stands ready to serve urban logistics with zero local CO₂ emissions. Pricing starts at €43,055.51 including VAT, while the combustion-engine Vito begins at €32,284.52.

Built in Vitoria: The Birthplace of a Legend

From day one, the Vito has rolled off the line at Mercedes-Benz’s historic Vitoria-Gasteiz plant in Spain. Named after its birthplace, the van is a product of craftsmanship honed over more than seven decades. With 4,800 employees and over 373,000 m² of production space, the factory is now preparing for the future. In 2026, it will begin producing next-generation electric vans based on the VAN.EA platform.

A Word from the Top

“Over the last 30 years, the Vito has proven to be a true all-rounder for professionals,” says Sagree Sardien, Head of Sales & Marketing at Mercedes‑Benz Vans. “Thanks to its compact dimensions and large cargo space, it is an ideal choice for urban settings. For our customers, the Vito offers a high level of functionality and flexibility, combined with comfort and efficiency.”

As the Vito enters its fourth decade, it continues to evolve — cleaner, smarter, and more connected than ever. Whether as a fleet backbone or a custom upfit solution, it remains an essential partner to industries worldwide. In the ever-changing world of mobility, the Vito doesn’t just keep up — it leads.

Source: Mercedes-Benz