Shocking news: Mercedes profit more than halves in third quarter of 2024
There is no end to the bad economic news coming out of Germany. The source is invariably Destatis, Germany’s Federal Statistical Office, whose director Ruth Brand (pictured) even had to repeat the famous phrase: “Don’t shoot the piano player.”
The new dosage concerns Germany’s foreign trade. In September 2024, exports from Germany to countries outside the European Union fell 4.7% from the results recorded in the previous month, dropping to €57.2 billion. The United States, the most important trading partner of German exporters, is helping German industry stay ahead: goods worth 13.4 billion euros were exported to the USA, up +1.1% from the corresponding month last year. In second place is China, which imported €6.9 billion worth of goods and services from Germany last month, down 9.6% from the same month in 2023. Rounding out the top three is Great Britain, whose imports from Germany recorded +0.3%, rising to €6.4 billion. And despite Western sanctions, German exports to Russia also increased, recording a 4.1% rise last month compared to September 2023, totaling €0.6 billion.
Part of the decline in Germany’s foreign trade can be attributed to the serious crisis situation facing the German automotive industry. German carmaker Mercedes suffered a veritable collapse in profits in the third quarter of 2024, with operating profit almost halving from the April to June period to €2.5 billion. In the core passenger car business alone, Mercedes’ operating profit fell 64 percent to 1.2 billion euros. “Third quarter financial results fell short of the expectations we had set for ourselves at Mercedes. The decline is mainly due to difficult market conditions and fierce competition, especially in China,” Mercedes CFO Harald Wilhelm (pictured) said.
Pluralia will publish an in-depth analysis of the German economy on Monday, October 28th Riccardo Fallico. Don’t miss it!