Mercedes-Benz Workers' Council Chairman: Must Urgently Regain Market Share and Rethink China Strategy
According to Reuters, Ergun Lümali, the chairman of the Mercedes-Benz workers' council, stated that it is imperative to urgently regain market share and reconsider the strategy in China to prevent annual sales from falling below 2 million units, which he described as “unacceptable” for labor representatives.
On Monday, Ergun Lümali expressed in a media interview that he would not be satisfied with fewer than two million vehicles per year — we need this volume to fully utilize our German factories. If we, as a company, rely on a significantly lower number for the long term, it would be fatal.
Mercedes-Benz CEO Ola Kaellenius initiated a plan in 2020, aiming to cut costs by more than 20% by 2025 and further push the brand into the premium market. However, some investors have suggested that the automaker should modify this strategy, as premium electric vehicle models are not performing as well in China as more affordable models.
Mercedes-Benz sold 1.46 million vehicles in the first nine months of this year, a decrease of 4.3% compared to the same period in 2023, and its pure electric vehicle sales are far behind BMW. The luxury car manufacturer expects full-year sales to be slightly lower than the 2.0438 million units sold in 2023.
As previously reported, Mercedes-Benz's third-quarter sales in 2024 were €34.53 billion (approximately 26.43 billion USD), a year-on-year decrease of 6.7%; net profit was €1.72 billion (approximately 1.32 billion USD), a year-on-year decrease of 54%.
