Mercedes Benz considers pulling cheapest US cars, says Bloomberg
Make us a preferred source
Make us a preferred source on Google
The news: Mercedes-Benz Group AG is considering withdrawing its least expensive cars from the US as President Donald Trump’s 25% auto tariffs would likely make their sales economically unfeasible, Bloomberg reported, citing unnamed sources.
The context: The German automaker is mulling cutting sales of more entry-level models like the small GLA SUV as part of broader tariff contingency plans. The company has not made a final decision and may still shift course depending on how the levies are implemented, according to the report.
Executives are reportedly frustrated by a lack of clear guidance from Washington, which is making it difficult to respond. Under Chief Executive Officer Ola Källenius, Mercedes has been directing resources to its most expensive models while scaling back compact cars.
The numbers: Berenberg analysts estimate the 25% US tariffs could cut car margins by 330 basis points and put 35%-40% of Mercedes-Benz’s 2025 operating profit at risk.
Mercedes-Benz’s first-quarter sales fell slightly year-on-year, mainly due to weakness in China, though the US showed solid momentum, a spokesperson said during a call with analysts on Monday.
What they said: Separately, a spokesperson told Bloomberg Mercedes is aiming to maximise its sales in the US but declined to comment further on the report.
The source: Bloomberg
