Mercedes-Benz reports a 26% drop in Q2 adjusted EBIT to 909 million euros as China demand softens, while US lawmakers advance a bill targeting Chinese-linked automakers.
Mercedes-Benz posted a 26% year-over-year decline in second-quarter adjusted EBIT to 909 million euros, as revenue from passenger cars fell 5% to 22.99 billion euros. The automaker cited ongoing weakness in China, its largest market, for the drop in earnings, though its adjusted return on sales beat analyst expectations at 4%.
The results come as US lawmakers advance legislation that could ban Mercedes vehicles from American roads due to its Chinese ownership stakes. The bill, backed by Senators Bernie Moreno and Elissa Slotkin, targets automakers with over 15% Chinese ownership, a threshold Mercedes exceeds with BAIC Group holding 9.98% voting rights.
Shares in Mercedes rose in early trading despite the profit decline, as investors focused on the better-than-expected margin performance. The company’s exposure to US-China tensions remains a key risk as the bill moves toward a full Senate vote.