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Mercedes Q2 profits slip, while a US connected-vehicle ban looms
Mercedes reported 22.99 billion euros in passenger car revenue in Q2, but adjusted EBIT fell 26% year over year as a US bill advanced that could restrict sales of connected vehicles with Chinese control starting in 2027.
Mercedes-Benz reported Q2 results showing strength in its core operations but continued weakness in China, with the financial update arriving as its US business faces potential regulatory risk. The company posted passenger car revenue of 22.99 billion euros in the quarter, down 5% from a year earlier, while adjusted EBIT fell to 909 million euros, a 26% year over year decline.
The car unit's adjusted return on sales edged down to 4%, from the prior year level, though Mercedes said the figure beat analyst expectations, according to Bloomberg cited in the report. The company characterized the quarter as mixed, with weakness in China offset by better performance in its core business.
Meanwhile, the US threat centers on a bill that would ban sales of connected vehicles with Chinese control, which senators Bernie Moreno and Elissa Slotkin moved through committee. If passed, the legislation would prohibit the import, sale, and operation of vehicles manufactured in China or other countries of concern, and would bar the use of Chinese-developed connected vehicle technologies such as software and data systems on American roads starting in 2027.
The article notes that Chinese entities hold almost 20% of Mercedes shareholding, crossing the 15% threshold mentioned in the bill, with BAIC Group at 9.98% of voting rights as the largest individual shareholder. Mercedes said no shareholder holds more than 10% of its stock and that major shareholders are not directly represented on the Supervisory Board or able to control company decisions, adding that it is committed to ensuring any new legislation does not impact its US operations.