A boom in demand has boosted Mercedes-Benz’s financial performance allowing it to offset rising material and transport costs, the car giant announced today.
“In terms of the desire of wealthy people to spend the money for exceptional products, I would say there is no barrier, there is no limit,” said chief financial officer Harald Wilhelm.
In the first quarter of 2022, the Stuttgart-based group reported its EBIT increased to €5.2bn – 11 per cent up on last year’s €4.7bn, while adjusted returns went up 16.4 and 12.6 per cent for its car and van division respectively.
“Our sharpened focus on desirable top-end and electric vehicles, combined with ongoing cost discipline, allowed us to deliver strong earnings despite numerous headwinds,” he added.
The manufacturer confirmed its guidance for the year, expecting an EBIT margin of between 11.5 and 13 per cent in the car division, but warned the war in Ukraine and lockdowns in China could halt production.
According to Wilhelm, the company was working to reduce its reliance on Russian gas, after Moscow turned on the tap. “We are working on how to reduce demand, but also on changing the energy source as quickly as possible,” he said.