Share price fall for Mercedes after profit warning

The German car manufacturer Mercedes' share falls hard – down by almost 8 percent on the Frankfurt Stock Exchange. The share price fall comes after the German car manufacturer on Thursday lowered its profit forecast for 2024.

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Share price fall for Mercedes after profit warning
Photo: Ng Han Guan AP/TT

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Other listed car manufacturers are also being dragged down by Mercedes' falling share price, including Volvo Cars on the Stockholm Stock Exchange.

Mercedes primarily attributes this to a rapid deterioration of the situation on the Chinese market and is lowering its earnings forecast to 7.5-8.5 percent, from previously 10-11 percent. The operating result is expected to be "significantly lower" than last year's level.

The profit warning from Mercedes is the latest in a series of signs that the German automotive industry is under pressure. Volkswagen (VW) has signaled that it may be necessary to close car factories in Germany for the first time in the company's history, and BMW warned on September 10 of a worse-than-expected result.

The German car manufacturers are also struggling with strong headwinds when it comes to car sales in Europe, particularly when it comes to electric cars – which in turn can lead to large fines for car manufacturers when new emission regulations in the EU come into force in 2025.

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By TTEnglish edition by Sweden Herald, adapted for local and international readers

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