CARS CARS MERCEDES RESULT’S FROM 2024

The CLA is the first vehicle in Mercedes-Benz’s product launch schedule, which will include a significant overhaul of the S-Class in 2026, an all-electric GLC and C-Class, a series of BEV and electrified high-tech ICE releases at Mercedes-AMG, and more. After hundreds of new or updated models hit the market until 2027, sales are predicted to increase overall.

Mercedes-Benz has started a comprehensive performance improvement effort called Next Level Performance to increase its resilience and competitiveness. Through a series of measures, Mercedes-Benz Group hopes to improve revenue quality, raise the bar for customer service, and further capitalize on growth possibilities through its direct sales channel.

The business will also take action to increase the flexibility and efficiency of its worldwide production base. Until 2027, the corporation intends to reduce production costs by 10%. Building on major accomplishments over the last four years, material costs will be addressed in close coordination with suppliers, and fixed-cost reductions will continue until 2027.

In the future, the entire portfolio will share a consistent design language. High-tech electrified ICE and BEV vehicles will capitalize on their individual advantages without compromising efficiency, convenience, style, or space. Mercedes-Benz will provide a consistent customer experience, a unified infotainment and Advanced Driver Assistance Systems (ADAS) tech stack, best-in-class roominess, and ideal proportions while maintaining strict cost control and manufacturing flexibility. This will enable Mercedes-Benz to customize products for particular markets, such as China.

Group earnings before interest and taxes (EBIT) reached €13.6 billion (2023: €19.7 billion). Group revenues came in at €145.6 billion (2023: €152.4 billion). The free cash flow from the industrial business reached €9.2 billion (2023: €11.3 billion), mainly due to a very high cash conversion rate at Cars and Vans. The net liquidity of the industrial business reached €31.4 billion (end of 2023: €31.1 billion), remaining at a similar level as the prior year, demonstrating strong cash generation at work, despite more than €10 billion in cash out for dividend payments and share buybacks in 2024.

The Board of Management and the Supervisory Board will suggest a dividend of €4.30 per share (2023: €5.30) at the Annual General Meeting on May 7, 2025.

Mercedes-Benz has agreed to repurchase its own shares on the stock exchange for a maximum of €5 billion (excluding incidental costs) over a 24-month period, provided that the authorization to do so is renewed by the Annual General Meeting in May 2025. This will allow Mercedes-Benz to repurchase up to 10% of its share capital. According to the current buyback policy, any future free cash flow from the industrial business—as available following possible small-scale M&A—that exceeds the roughly 40% dividend payout ratio of Group Net Income will be used to finance share buybacks with the aim of redeeming shares. This buyback is based on this policy.