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.
Source: Mercedes-Benz
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.
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China’s Contemporary Amperex Technology Co., Limited (CATL) has unveiled its latest battery cell technologies, which charge as quickly as filling up a gas tank while potentially lowering costs without compromise.
CATL has quickly become the world’s largest battery manufacturer by a wide margin. It is one of, if not the biggest, force for advancing electric transportation.
A big part of CATL’s success is due to its advancements in lithium-iron phosphate battery cells, also known as LFP. LFP cells are cheaper than nickel-rich batteries, but they used to have much lower energy density.
The Chinese battery manufacturers managed to close the gap somewhat while maintaining lower costs, resulting in LFP cells becoming popular for entry-level EVs.
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Now, CATL is looking to do the same with sodium-ion batteries.
Like LFP cells, sodium-ion battery cells have the potential to be cheaper than more common Li-ion cells, but they also offer potential for superior performance, particularly in terms of faster charging and longer lifecycles.
CATL has unveiled today Naxtra, its new sodium-ion battery cells, and it claimed some truly impressive specs.
The new cell reportedly achieves an energy density of 175 Wh per kg (385 Wh per lb), on par with the higher-end of LFP battery cells.
The new cells also offer potential for significant safety improvements.
CATL shared several intense stress tests, including drilling into a cell and even cutting it in half without any thermal event:
The next-gen sodium cells could help further lower the cost of electric vehicles without compromising performance, and while increasing safety.
On top of the new Naxtra cell, CATL has also unveiled its next-gen Shenxing LFP battery cells.
Its charge rate is truly impressive. CATL shared several examples of cars charging at around 1,000 kW and maintaining over 500 kW at over 50% state of charge:
The new cell is being described as capable of adding 300 miles (482 km) of range in about 5 minutes – depending on the EV model.
That’s virtually as quick as filling up a tank of gas.
CATL says that the Shenxing will be in 67 electric vehicle models by the end of the year.
New York State has announced an extra $30 million for point-of-sale rebates to lease or buy more than 60 new EV models.
The rebates are available to consumers through New York’s Drive Clean Rebate program, which offers a point-of-sale rebate off the manufacturer’s suggested retail price (MSRP) of an EV at participating car dealerships in New York State.
The rebate is available in all 62 counties, with the highest rebate of $2,000 available for EVs with a greater-than-200-mile range. (For a 40- to 199-mile range, the rebate is $1,000.) The New York State Energy Research and Development Authority (NYSERDA) runs the program.
NYSERDA President and CEO Doreen M. Harris said, “Converting to EVs reduces the total cost of vehicle ownership through lower fuel and vehicle maintenance costs, and NYSERDA is proud to help provide New Yorkers with more purchasing power through these rebates.”
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The Drive Clean Rebate program has issued over 190,000 rebates to consumers since 2017, contributing to the more than 280,000 EVs on the road in New York State.
NYSERDA also boosted its EV charging incentives. Through the Charge Ready NY 2.0 program, the state is boosting the cash available for Level 2 charger installations at apartment buildings, workplaces, and hotels from $2,000 to $3,000 per port. And if the chargers go into disadvantaged communities, that amount jumps to $4,000 per port.
New York has racked up over 17,000 public EV chargers, making it second only to California for charger count. On top of that, there are more than 4,000 semi-public stations tucked into workplaces and multifamily buildings across the state.
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LTL carrier ArcBest Freight (ABF) announced plans to add five new Orange EV electric terminal tractors to its existing ZEV fleet, bringing its total deployment of these battery electric HDEVs to 14 … with even more to come.
LTL stands for “Less than Truck Load,” and basically means that, since whatever you’re shipping won’t take up a full container, you can share the costs of shipping with other customers with goods going the same way. You save a little more money and the shipper makes a little more money, making it a rare win-win scenario in the shipping space. And that’s important, because LTL containers amount to a massive 15% of total US shipping.
ABF has been putting Orange EV yard dogs to work in their LTL traffic terminals since their initial deployment of four trucks in June 2022. The company added five more a few years later, and just purchased five more — further underscoring their confidence in the benefits of transitioning their fleet to electric power.
“The Orange EV terminal trucks meet our operational requirements and expectations for safe, reliable, and affordable service and performance,” explains Matthew Godfrey, ABF Freight president. “We’re committed to responsible environmental management, and our investment in EVs aligns with our continuous efforts to enhance efficiency while maintaining exceptional service standards.”
Over at The Heavy Equipment Podcast, we had a chance to talk to Orange EV founder Kurt Neutgens ahead of last year’s ACT Expo for clean trucking. On the show (embedded, above), Kurt explained how his experience at Ford helped inform his design ideology, and that the Orange EV was designed to be cost competitive with diesel options, even without subsidies.
Give it a listen, then let us know what you think of the big yard dogs in the comments.