Why is Mercedes-Benz stock so low?
Mercedes-Benz Group (OCTPK:MBGAF), the manufacturer of luxury cars and vans, is facing significant sales pressure due to macroeconomic uncertainty, while tariffs are pressuring margins. With a global market and supply chain, the company is susceptible to swings in the broader economy and tariffs. MBGAF: Mercedes-Benz Group AG – Stock Price, Quote and News – CNBC.
Are Mercedes in financial trouble?
BLEAK OUTLOOK. After a 30% slump in earnings in 2024, and 40% in its cars division, this year will see earnings fall even further, Mercedes-Benz said, expecting a rate of return in its car division of just 6-8%. Mercedes-Benz Corporation has been a division of a larger German automobile manufacturer, Daimler AG—but as of February 1, 2022, Daimler AG is now officially known as Mercedes-Benz AG!Mercedes-Benz Group AG announced a sharp decline in its third-quarter 2025 financial results, hit by weakened sales volumes, rising US tariffs, and ongoing restructuring costs.
What is the downside of owning a Mercedes?
High Purchase and Maintenance Costs The initial purchase cost can be significantly higher, and maintenance and repair costs can also be steep. It’s important to consider the long-term financial commitment associated with owning a Mercedes-Benz. Audi maintenance is slightly more expensive. BMW maintenance is expensive, but parts are easy to get. Mercedes is slightly easier to maintain; however, service can be expensive.