STUTTGART / LONDON (IT BOLTWISE) – Automotive giant Mercedes-Benz is struggling with a drastic drop in profits that saw its surplus shrink by half in the first nine months. Porsche also faces major challenges, as the costs of extending combustion technology almost completely eat up its profits. These developments highlight the difficulties the German automotive industry has in asserting itself in a rapidly changing market environment.
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The automotive industry is facing a number of challenges, which are reflected in the latest financial figures from Mercedes-Benz and Porsche. Mercedes-Benz, once a symbol of German engineering and luxury, is facing a drastic decline in surplus. In the first nine months of 2025, profits fell by half, due to a combination of increased production costs and intensifying competition.
Porsche, known for its high-performance sports cars, is also struggling with significant financial burdens. The decision to keep combustion engines in the portfolio for longer resulted in billions in costs, which almost completely wiped out the profit in the first three quarters. This strategic decision contrasts with the efforts of many competitors to advance the electrification of their fleets.
Parent company Volkswagen will publish its own figures shortly, and no positive surprises are expected here either. The entire German automotive industry is under pressure to adapt to new market conditions characterized by stricter environmental regulations and changing consumer behavior.
Meanwhile, Deutsche Bank is showing a completely different side. With record results in the third quarter, the bank is well on its way to achieving its annual targets. This is in stark contrast to the challenges facing the automotive industry and highlights the different dynamics in different sectors of the German economy.
Overall, these developments highlight the need for traditional industries to rethink their strategies and adapt to the new realities. The coming months will be crucial to see how the major players in the automotive industry prepare for the future.
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