Mercedes-Benz’s Q1 2024 report shows revenues are down, but its share of EV sales is growing
Mercedes-Benz joins a growing list of EU-based automakers publishing their Q1 2024 financial reports today, and the German brand is relaying a similar story of staggering profits.
Mercedes-Benz remains one of the most well-known automakers out of Germany and one of the leaders in luxury vehicles. As an automaker committed to electrification, we’ve seen Mercedes continue to expand its EQ line of BEVs, which now includes a revamped EQS sedan for 2025 (seen above).
The automaker also recently revealed the “G580 with EQ technology” – an all-electric version of the famed G Class, complete with four motors and the ability to complete tank turns (although it seems to have sacrificed Mercedes’ dedication to aerodynamics to stay true to the combustion-clad design that preceded it).
As you’ll see below, EV sales continue to grow in Mercedes-Benz’s portfolio (although there’s a slight catch). Still, the automaker’s Q1 2024 report shows a slight revenue drop and an even more significant gap in other notable categories.
Mercedes’ Q1 2024 numbers detail steady cash flow
Mercedes-Benz shared multiple detailed reports for Q1 2024 today. Revenues are down, but plenty of other metrics support the German automaker’s confidence that it can maintain its financial outlook for the year.
One of the most notable numbers is Mercedes’ €3.86 billion ($4.18 billion) in earnings before interest and tax (EBIT) in Q1 2024. That number saw a 30% drop compared to Q1 2023 (€5.5 billion). Mercedes-Benz Cars’ EBIT was also down, reporting €2.5 billion compared to €4.1 billion in Q1 2023. Those earnings contributed to an adjusted Return on Sales of 9.0% (down from 14.8% in Q1 2023)
The German automaker cited a temporary decline in volumes and model transitions in its Top-End segment, as well as higher lifecycle management costs to ” keep products at the cutting edge” as the reasoning behind the declining percentages.
Despite negative YOY earnings, Mercedes remains quite liquid on the wings of bolstered free cash flow. Per the release:
The Free Cash Flow from the Industrial Business in the first quarter reached €2.23 billion (Q1 2023: €2.16 billion), supported by an adjusted Cash Conversion rate of 1.0 at Mercedes-Benz Cars. The Net Liquidity from the Industrial Business rose by 6% to a strong and very comfortable level of €33.6 billion (end of 2023: €31.7 billion). This included a share buyback of approximately €300 million in the first quarter. The Group’s investments in property, plant and equipment in the first quarter totaled €0.7 billion (Q1 2023: €0.8 billion). Research and development expenditure fell to €2.2 billion (Q1 2023: €2.5 billion).
Mercedes stated that pricing remained high in Q1 2024, and the automaker has no intention of engaging in any discount wars to stay competitive in the market. Instead, it expects its top-end models to lead sales and help it reach its financial goals for the year as targeted.
Speaking of sales, both BEV and PHEV numbers were down year over year (-2% and -8%, respectively). However, the overall share of EV sales in Mercedes’ portfolio was up in Q1 2024 – 19.5% compared to 18.2% a year ago. Still, it’s important to note that PHEV sales led to those boosted sales percentages, not BEVs.
Looking ahead, Mercedes-Benz believes it can remain competitive in its given segments without folding on price cuts. Per Member of the Board of Management of Mercedes-Benz Group AG, Finance & Controlling/Mercedes-Benz Mobility, Harald Wilhelm:
Mercedes-Benz delivered a solid Free Cash Flow in the first quarter thanks to our disciplined go-to-market approach, our desirable products and despite the volatile economic environment and external challenges. While we remain vigilant about the global macroeconomic and geopolitical outlook, we confirm our full-year financial targets for 2024.
FTC: We use income earning auto affiliate links. More.
Launched as a joint venture between Toyota Group and Tier 1 supplier Hexagon Purus, the new Tern brand of heavy duty electric trucks announced Hino Trucks as its exclusive US distributor.
Another Toyota Group brand, Hino Trucks nevertheless brings a nationwide network of more than 200 heavy truck dealers (and their customers) to the new JV with Hexagon, which is specifically focused on electrifying “practical” commercial vehicle applications.
Glenn Ellis, President and CEO of Hino Trucks, expressed enthusiasm about the partnership. “Our collaboration with Hexagon Purus introduces a highly reliable Class 8, 4×2 tractor option into the electric truck market, catering to a wide range of applications,” he explained. “We are excited to be the exclusive distributor for Tern with an initial distribution focus in California, where fleet electrification is imperative.”
Tern RC8 electric semi
The new Tern RC8 electric truck offers a 68,000 lb. GVWR, 680 peak horsepower electric motor (494 continuous), a 200 mile range, and the ability to go from 0-80% charge in less than two hours at 240 kW. Energy comes from dual Hexagon Purus Gen3 269kWh battery packs in a 750-volt, 538 kWh configuration.
The announcement coincides with California’s Advanced Clean Fleets regulation, and was made today at the ACT Expo, which is taking place this year in the West Hall of the Las Vegas Convention Center. Serial production for the Tern RC8 is scheduled to begin later this year.
Electrek’s Take
It’s hard to act surprised that a Toyota brand is going to be supported by Toyota’s existing dealer network, but it’s worth noting that, while Toyota is marketing/lobbying against EVs on the one hand, it’s quietly investing big bucks into battery electric on the other.
My guess: as soon as Toyota has a viable BEV on the market, they’ll “suddenly” realize that BEVs were the way to go all along. #bet
FTC: We use income earning auto affiliate links. More.
With influence from the designer behind the Aston Martin Vanquish and Jaguar I-Pace, the Callum Skye is a fierce-looking off-road EV sports car. The latest Ian Callum creation is now available to order.
Meet the $100,000 Callum Skye off-road EV sports car
The Callum Skye is the first EV from Ian Callum, an iconic British car designer’s own design and engineering firm.
Introduced last November, the Callum Skye is an all-electric 2+2 off-roader. As the “world’s most beautiful multi-terrain vehicle,” according to its engineers, the Skye is unique and versatile.
With a Callum design, you can see the influence from the Jaguar F-Type and Aston Martin vehicles with its sleek, rugged exterior design.
The electric sports car is designed for those seeking “extraordinary on and off-road adventures,” crafted with “the utmost capability, refinement, and beauty.”
Powered by a 42 kWh battery, the Callum Skye is expected to get up to 170 miles range. It also includes ultra-fast charging for a full charge in under 10 minutes.
At 4,047 mm long and 1,900 mm wide, the Skye is smaller than other off-road EVs like the Rivian R1T, but like the Rivian, it boasts sports car performance, with a 0 to 60 mph sprint in under 4 seconds.
At just 1,150 kg (about 2,500 lbs), the off-roader is also one of the lightest EVs on the market.
The inside features a central touchscreen with Apple CarPlay and Android Auto compatibility. Callum designed the dashboard with a focus on functionality with easy touchscreen dials.
Up front are two cossetting sports seats. Meanwhile, the rear features a versatile bench that can removed for extra storage.
Callum says the hinged tailgate has enough storage for luggage for a long weekend getaway, sports, and lifestyle gear.
The Callum Skye has been testing in Europe and is now available to order. According to Autocar, the production version is priced from £80,000 to £110,000 ($101,700 to $140,000). The company plans to release several variants, but more details and specs will be revealed closer to launch.
If interested, you can reserve your Callum Skye model on the company’s website here.
What do you think? Would you buy the electric off-roader for $100,000? Drop us a comment below to let us know your thoughts.
FTC: We use income earning auto affiliate links. More.
Renault doesn’t think fully autonomous vehicle have a place in the private vehicle market – but pulic transit? That’s a different story, and Renault is partnering with WeRide to put this Level 4 autonomous shuttle bus into production.
While some manufacturers are putting everything they’ve got into autonomous driving (for better or worse), French carmaker Renault is taking a different path. The company believes that, by separating expectations for individual vehicles from those of public transportation, they’ll be able to deliver on the promise of self-driving vehicles much sooner than later.
This latest project is being developed in conjunction with WeRide, a company that launched in 2017 with the stated goal of managing the large-scale commercial deployment of vehicles with an L4 level of autonomy. Together, WeRide and Renault have been testing its autonomous shuttle concepts for years in an effort to meet the needs of local authorities in European “low emission” zones.
“Renault Group is moving forward to implement its autonomous vehicle strategy,” says Gilles Le Borgne, CTO Renault Group. “As a result, thanks to our experiments and our partners, the best in their fields, we will be in a position, well before the end of this decade, to propose a highly relevant range of autonomous, low-carbon miniBuses to meet the growing needs of the regions.”
A fleet of these WeRide automated electric minibuses are slated to be integrated into the public transportation network of Chateauroux Metropole in France by 2026.
Electrek’s Take
In a bit of a surprise move, Renault is playing up the cost benefits of eliminating the operators’ jobs in its press release – specifically calling out those savings as a key benefit in the purchase of its automated shuttles. Lest you think that’s an exaggeration, I’ve quoted them:
More flexible, autonomous miniBuses will be able to operate 24/7 in complete safety and will be a zero-emission alternative or an efficient complement to existing solutions (train, tram, bus) in terms of costs and CO2/km.passenger. The additional costs of robotisation and automation could be offset by the absence of on-board operators. A simple remote supervision system will be required to operate a fleet of vehicles.
Why is this surprising, you ask? Well, the French have a habit of, you know – rioting in the streets and setting things on fire whenever they feel like their labor benefits are threatened. For a French company to actively market taking away those jobs?
That’s either brave or stupid.
FTC: We use income earning auto affiliate links. More.
-
Sports2 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports1 year agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Environment12 months agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Sports1 month agoStory injured on diving stop, exits Red Sox game
-
Sports7 months agoGame 1 of WS least-watched in recorded history
-
Sports3 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment1 year agoGame-changing Lectric XPedition launched as affordable electric cargo bike
-
Environment1 year agoTesla advances Powerwall pilot project with German electric company