Difficult third quarter for Mercedes. The German automobile concern ex-Daimler (Mercedes-Benz, Smart, etc.) showed a drop in indicators for the period: the turnover fell by 1.4%, and net profit decreased by 7%. The results are well below the second quarter, when the company even had the luxury of revising its year-end targets upwards. But what happened? Mercedes had to face numerous crises. Already in stock because Production of the GLC and E-Class was affected by a shortage of 48V batteries supplied by the equipment manufacturer Bosch: the loss is estimated at 5% of sales during the year.
“Boost” sales to rebalance accounts
With the current economic situation, The group also recorded an 11% drop in orders for the most luxurious models or model variants., which usually give a high margin. But the price war that Tesla is currently waging and that many competitors are trying to join has not escaped the group either. Even if its sales of EQ models (100% electric) increased by 66%, this performance was not enough to bring his accounts back into the black… To “boost” your sales between the end of the year and the end of fiscal year 2023, and in order to sell off its many units from the warehouse, Mercedes is in the process of creating, behind the scenes, very serious discounts on their new models.
Big discounts in the future
Financial information site Business Insider would actually get internal memo “Sales promotion program” intended for German distributors of the brand. Mercedes will indicate the discounts that apply to the various models and versions in stock. And since they are now agents of the brand and not dealers (ie they no longer buy the car from the manufacturer and then resell it to the customer), they must meet the manufacturer’s requirements. For example, count 15% discount on EQE SUV20% on Mybach S-Class, 24% on C-Class Coupé or even 30% on a C-class sedan ! Big discounts, sometimes valued at over €30,000 ! Two questions remain: Will this internal memo actually materialize online? And above all, as far as we are concerned, is there any chance that this promotional program will also be applied to the French Mercedes distribution network?
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Source: Auto Plus
Robert is an experienced journalist who has been covering the automobile industry for over a decade. He has a deep understanding of the latest technologies and trends in the industry and is known for his thorough and in-depth reporting.