Car earnings plunge by 64
Sees car sales below 2023 level, says will step up cost cuts
Blames weak China, fierce competition for slump

Oct 25 Reuters German premium automaker MercedesBenz on Friday said thirdquarter earnings in the core car division plunged by 64, massively missing analysts39; estimates, as Chinese consumers continued to cut back on luxury goods in a weakening economy.

The Q3 results do not meet our ambitions, CFO Harald Wilhelm said in a statement, adding that the group will step up cost cuts.

The JulySeptember earnings were hit by model revamp costs as well as a tough market, especially for new versions of the GClass SUV, which will roll out in the next quarter, Mercedes added.

It sees annual car sales slightly below the previous year, and fourthquarter sales in line with the third quarter.

A rare bright spot in the results was the continued cash flow generation from the industrial business, which reached 2.39 billion euros 2.59 billion in the quarter, up 2 yearonyear.

Adjusted earnings before interest and taxes EBIT in the car unit dropped to 1.2 billion euros versus LSEG39;s mean estimate of a 3.6 drop to 3.19 billion euros

CHINA WOES

MercedesBenz CEO Ola Kaellenius has warned that Chinese consumers are extremely cautious about making big purchases, as longstanding economic weakness and by a local real estate crisis have created considerable uncertainty for consumers.

The luxury carmaker cut its fullyear profit margin target twice during…