Latest news with #Mercedes-BenzGroup
CNBC
10 hours ago
- Automotive
- CNBC
Luxury carmakers flag combined costs of $889 million as U.S. tariffs bite
Luxury automakers Porsche , Mercedes-Benz Group and Aston Martin on Wednesday each laid out the painful impact of U.S. President Donald Trump 's trade war — to the tune of a combined $889 million blow. German sportscar manufacturer Porsche said U.S. import tariffs resulted in a 400-million-euro ($462 million) hit in the first six months of the year, while domestic peer Mercedes-Benz Group warned of a tariff effect of roughly 370 million euros in the second quarter. British luxury carmaker Aston Martin also issued a profit warning, citing the impact of U.S. tariffs and weak Chinese demand. The London-listed company, famed for both featuring in the iconic James Bond movies and for its history of financial ups and downs, said the "evolving and disruptive U.S. tariff situation was unhelpful to our operations" through the June quarter. Collectively, the luxury carmakers warned of combined costs exceeding 770 million euros, or $889 million, from U.S. tariffs. The flurry of corporate earnings has been reaffirming the impact of the Trump administration's trade measures on Europe's auto giants. The White House in April raised tariffs to 27.5% on European Union auto imports, seeking to protect and strengthen the U.S. automotive sector. Several carmakers have since sounded the alarm , particularly given the high globalization of supply chains and the heavy reliance on manufacturing operations across North America. European auto industry groups welcomed news of a U.S.-EU framework trade agreement earlier in the week, while simultaneously expressing deep concern about the costs linked to the new tariff reality. 'Not a storm that will pass' The agreement brokered on Sunday means the Trump administration will impose a blanket tariff of 15% on most EU goods. It represents a significant reduction from Trump's threat to levy charges of 30% from Aug. 1 and almost halves the existing tariff rate on Europe's auto sector. "We continue to face significant challenges around the world. And this is not a storm that will pass," Oliver Blume, chairman of the executive board of Porsche, said in a statement out Wednesday. "The world is changing dramatically – and, above all, differently to what was expected just a few years ago. Some of the strategic decisions made back then appear in a different light today." Shares of Porsche rose 2.4% on Wednesday morning, while Mercedes-Benz Group dipped 1.5% and Aston Martin fell more than 2%.
Yahoo
17-07-2025
- Automotive
- Yahoo
Mercedes-Benz brings Microsoft Teams calls to cars
Mercedes-Benz has expanded its partnership with Microsoft to bring popular business tools, including Teams, into its cars. The partnership introduces advanced Microsoft business productivity and collaboration tools, starting with the all-new CLA. The productivity enhancements will be rolled out this summer, starting with the powered fourth-generation MBUX in the new CLA. The updated Meetings for Teams app in Mercedes-Benz vehicles now allows drivers to participate in Teams calls using the in-car camera, ensuring compliance with local laws and focusing on safety. The app automatically disables the video stream when the camera is activated to prevent driver distraction. Additionally, the app features a new dashboard with upcoming meetings, quick access to frequent contacts, and an expanded chat function, all designed to enhance productivity while driving. Mercedes-Benz is the first to natively integrate Microsoft Intune into a vehicle operating system, creating a secure workspace on wheels. This integration into allows customers to manage business and private data separately and provides IT administrators with tools to control access rights and security policies. The integration supports productivity apps like MBUX Notes and Calendar and will be available in Europe and the US. The collaboration also aims to bring Microsoft 365 Copilot into Mercedes-Benz vehicles, marking one of the first in-car applications of generative AI. The advanced AI will assist users in summarising emails, retrieving client information, and managing tasks through voice commands, potentially making the vehicle a third workspace alongside the office and home office. Mercedes-Benz Group chairman of the board of management Ola Källenius said: 'Through our industry-leading collaboration with Microsoft, we are making it even easier for our customers to stay productive while on the move. By integrating the latest Microsoft workspace tools, such as Microsoft Teams, directly into our new operating system, we've created an intuitive and safe user experience that boosts efficiency and reduces distractions at the same time.' "Mercedes-Benz brings Microsoft Teams calls to cars" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Times
08-07-2025
- Automotive
- Business Times
Porsche warns of challenging H2 after 6% sales decline
[Stuttgart] Porsche warned of a tough road ahead for sales this year after a slowdown in the lucrative US market and persistent weakness in China. The sportscar maker's global deliveries fell 6 per cent in the first half of the year, an improvement on the sharper decline recorded in the first quarter. In North America, where Porsche relies solely on imports, growth slowed to 10 per cent, from a 37 per cent surge in the three months through March. 'We expect the environment to remain challenging,' Matthias Becker, Porsche's board member for sales and marketing, said on Tuesday (Jul 8) in a statement. The company cited fierce competition in China as the main factor behind its 28 per cent sales slump in the world's biggest auto market. European luxury-car makers are losing momentum in the US and continue to fall behind in China, where local brands are taking over. Mercedes-Benz Group on Monday said its sales dropped 10 per cent in the second quarter after President Donald Trump's tariffs curbed deliveries in the US and China. Porsche is one of the manufacturers most exposed to the levies because it lacks a factory in the US. Addressing its performance in China, the Volkswagen-controlled brand pointed to fierce competition in the luxury and electric-vehicle segments that are increasingly dominated by homegrown manufacturers led by BYD. Global sales of the 911 fell 9 per cent due to the phased introduction of updated versions. The Macan sport utility vehicle was the brand's top performer, with sales up 15 per cent in the first half – almost 60 per cent of them the all-electric version. BLOOMBERG
Business Times
04-06-2025
- Automotive
- Business Times
Mercedes, BMW step up response to China export curbs to avoid shortages
[FRANKFURT] Automakers in the US and Europe raised concerns about China's export controls on rare earth metals, as Beijing's move threatens to disrupt global car production. Mercedes-Benz Group and BMW are in talks with suppliers to prevent shortages of components containing these materials, with the former discussing stockpiling certain items. Meanwhile, Ford Motor said it's taking longer for some parts to get through China's approval process for exporting rare earths, with shipping costs rising in some cases. 'It just puts stress on a system that is highly organised,' Ford chief financial officer Sherry House said on Wednesday (Jun 4) at an industry conference in New York. The controls mean automakers must find alternative parts or ways to source supplies, she said. Ford had to idle a factory in Chicago producing the Explorer sport utility vehicle for an entire week last month due to a rare earths shortage. While its car factories are operating as usual, parts of BMW's supply network are affected by China's curbs, a spokesperson said, without giving further detail. In response to tariffs from US President Donald Trump, China in April imposed controls on rare earth exports that threaten to disrupt the global supply of key materials widely used in high-tech manufacturing, from electric vehicles to weaponry. Automakers need rare earths such as terbium for motors in electric cars, while others are used in combustion engine vehicles, such as in sensors and electronic systems. China dominates the market for processing these materials. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The potential squeeze on rare earth magnets is drawing comparisons to the global semiconductor crisis that disrupted automotive production in the wake of the coronavirus pandemic. 'It's a major issue for the industry,' John Murphy, a Bank of America auto analyst told Detroit-based reporters Wednesday at an Automotive Press Association event. 'Like other supply shocks, they are very industrious and are going to find workarounds fairly quickly.' While unlikely to force immediate production stoppages, he said that 'over time, if it's not solved, it's going to become a very expensive problem'. The industry has lobbied the Trump administration to prod China to resume shipments of rare earth materials such as dysprosium and critical components made from them such as magnets. 'Matter of weeks' 'Without swift intervention from the administration, we anticipate this to impact and potentially interrupt US auto production in just a matter of weeks,' the heads of automaker trade group Alliance for Automotive Innovation and Mema, the largest vehicle supplier association, said in a joint letter dated May 9 and addressed to several Cabinet secretaries. While carmakers do not typically purchase rare earth metals directly, major suppliers use them in electric motors and hybrid systems delivered to automakers. 'If you come into such a risk situation, then we are in constant, constant dialogue with our suppliers,' Jorg Burzer, Mercedes' head of production, told reporters on Wednesday at a plant in Rastatt, Germany. 'Naturally, we discuss with them what the best tool is for risk management, so physical buffers play a role.' Elsewhere, Rivian Automotive has been working to educate the Trump administration on the complexity of supply chains, including how challenging it would be to process rare earths in the US, chief executive officer RJ Scaringe said at the UBS conference. 'These are 24-hour days, full-court press. We have a giant team on this,' Scaringe said. BLOOMBERG
Business Times
20-05-2025
- Automotive
- Business Times
BMW to buy back more shares worth up to 2 billion euros
[BERLIN] BMW is buying back as much as 2 billion euros (S$2.9 billion) of stock starting this month. The carmaker's management board approved the programme, which will be concluded no later than April 30, 2027, BMW said on Tuesday (May 20). It's the German company's third major buyback in three years. BMW shares rose as much as 2.5 per cent in Frankfurt after the announcement. The stock is roughly flat this year. Carmakers have returned more money to shareholders in recent months. Mercedes-Benz Group in February announced plans to buy back as much as 5 billion euros in stock over a period of two years, telling investors it may cut its stake in Daimler Truck Holding to help fund the moves. BMW's latest programme is applicable to both ordinary and preferred shares, with the latter's volume limited at 350 million euros. At the company's annual general meeting last week, shareholders authorised the repurchase of as much as 10 per cent of the company's share capital within five years. BLOOMBERG
