(Oct 29): Mercedes-Benz Group AG confirmed its annual outlook and said it will proceed with a €2 billion (US$2.3 billion) share buy-back after the luxury-car maker defended its profitability in the third quarter.
The manufacturer’s adjusted return on car sales rose to 4.8% in the period, within the range it sees for the full year. The buy-back will happen over a period of 12 months, the automaker said on Wednesday.
Like its rivals BMW AG and Audi, Mercedes is grappling with waning deliveries in China and the cost of US tariffs. The headwinds are testing chief executive officer Ola Källenius’s strategy to move further upmarket while scaling back entry-level models. The push has boosted revenue per vehicle but left the company more exposed to faltering appetite for pricier electric models.
China remains the epicentre of Mercedes’ slowdown. The company’s sales in the country fell 27% in the three months through September — its worst quarterly performance there since 2016 — as luxury demand cooled and local manufacturers led by BYD Co and Xiaomi Corp gained ground.
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