More Expensive Cars Drive Mercedes-Benz Results

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By charging more money for its cars, Mercedes-Benz can largely offset the impact of the ongoing shortage of computer chips and the war in Ukraine. This is evident from the quarterly results of the German manufacturer on Wednesday.

 

Mercedes saw its turnover increase in the first three months to 34.9 billion euros, an increase of 6 percent compared to the first quarter of 2021. Adjusted operating profit (EBIT) – cleared of one-off items – amounted to 5.3 billion euros, about a fifth more. The automaker beat analysts’ expectations. At 3.6 billion euros, slightly less than a fifth less profit remained.

The partial cessation of activities in Russia due to the invasion of Ukraine cost Mercedes 709 million euros. In comparison, it also had to allocate 281 million euros to the diesel scandal. In addition, the group sold its own sales outlets in Canada, which in turn meant a one-off windfall of 918 million euros.

Mercedes says that the good financial results are due to “pricing power” combined with the shifted focus to its more expensive models and cost savings.

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