Mercedes-Benz Group Sees Revenue Surge Following AMG Spin-Off

Mercedes-Benz Profit Halves Amidst US Tariffs and China slowdown

By Archyde staff
July 26, 2023

Mercedes-Benz has announced a substantial decrease in its group profit for the first half of the year. The luxury automaker saw its earnings plummet by over 55 percent, falling from approximately 6.1 billion euros to around 2.7 billion euros compared to the same period last year.

This sharp decline has been attributed to several key factors impacting the global automotive market. The company specifically pointed to the heavily increased US import tariffs as a major contributor to the reduced profitability.

Moreover, a weaker business performance in China has also weighed on the company’s financial results. The slowdown in this crucial market presents a significant challenge for European automakers.

Special effects, including costs associated with personnel adjustments, also put pressure on the group’s bottom line. These one-off charges further impacted the overall result for the period.

In the second quarter specifically,the operating result dropped by a considerable margin,decreasing by a good two-thirds to 1.3 billion euros. Analyst expectations were met, with adjusted operational profit halving to two billion euros in the same quarter.

The impact of US import tariffs has been notably felt, with a notable increase from 2.5 percent to 27.5 percent for certain vehicles like the S-Class luxury sedan. Analysts suggest that Mercedes-Benz absorbed much of these tariff costs, rather than passing them on to consumers, thereby impacting profit margins.

Frequently Asked Questions about Mercedes-Benz’s Performance

What caused the drop in Mercedes-Benz’s profit?

Mercedes-Benz’s profit drop was mainly due to increased US import tariffs and a weaker business performance in China.

How much did Mercedes-Benz’s profit decrease?

The group result dropped by 55.8 percent, from around 6.1 billion euros to around 2.7 billion euros in the first half of the year.

What specific US tariffs affected Mercedes-Benz?

Tariffs increased considerably, for example on the S-Class luxury sedan, from 2.5 percent to 27.5 percent.

Did Mercedes-Benz pass on tariff costs to customers?

Analysts suggest that the company absorbed much of the tariff costs, rather than passing them on through higher prices.

How did the China market impact Mercedes-benz?

A weaker business performance in China was cited as another key reason for the decline in profits.

What are your thoughts on Mercedes-Benz’s recent financial results? Share your views in the comments below or share this article with your network!

What potential risks associated with AMG’s increased autonomy could impact the Mercedes-Benz Group’s overall financial stability?

The financial Impact of increased Autonomy for AMG

The recent strategic move by the Mercedes-Benz Group to spin off its high-performance AMG division is already yielding significant financial results. initial reports for the second quarter of 2025 indicate a ample revenue surge, exceeding analyst expectations. This positive trend is attributed to several key factors, including streamlined operations, focused brand strategy, and increased investment in electric vehicle (EV) technology within the AMG framework.The spin-off, completed in early 2025, granted AMG greater operational independence, allowing for faster decision-making and a more agile response to market demands. This has directly impacted sales figures for Mercedes-AMG vehicles.

Key Revenue Drivers Post Spin-Off

Several areas have contributed to the impressive revenue growth:

Increased Demand for AMG Models: The heightened brand focus and marketing efforts following the spin-off have fueled consumer interest in AMG vehicles. Demand is particularly strong for the new generation of AMG electric cars, showcasing the division’s commitment to future mobility.

Optimized Production & Supply Chain: with greater control over its production processes,AMG has been able to optimize its supply chain,reducing costs and improving efficiency. This has resulted in higher profit margins on each vehicle sold.

Expansion into New Markets: The independant AMG structure has facilitated quicker expansion into emerging markets, particularly in Asia and the Middle East, were demand for luxury and high-performance vehicles is rapidly growing.

Strategic Partnerships: AMG’s newfound autonomy has allowed it to forge strategic partnerships with technology companies specializing in EV components and software,accelerating the progress of innovative features and technologies. This includes collaborations focused on high-performance batteries and advanced driver-assistance systems (ADAS).

The Role of Electric Vehicles in AMG’s Growth

The shift towards electrification is a central component of AMG’s growth strategy. The division is heavily investing in the development of AMG evs, with several new models planned for release in the coming years. This commitment to electric mobility is not only attracting a new segment of customers but also enhancing AMG’s brand image as a forward-thinking and sustainable luxury car manufacturer.

EQE SUV AMG: The launch of the EQE SUV AMG has been a major success, demonstrating the potential of electric powertrains in delivering the signature AMG driving experience.

Future EV Platforms: AMG is actively developing dedicated EV platforms that will underpin future generations of high-performance electric vehicles, ensuring optimal performance and efficiency.

Hybrid Technology: Alongside fully electric models, AMG continues to refine its hybrid technology, offering customers a range of powertrain options to suit their preferences. AMG hybrid cars remain a significant part of the portfolio.

impact on Mercedes-Benz Group’s Overall Financial Performance

The success of the AMG spin-off is not only benefiting the high-performance division but also positively impacting the overall financial performance of the Mercedes-Benz Group.

Increased Group Revenue: The revenue surge from AMG is contributing considerably to the Group’s overall revenue growth, bolstering its financial position in the competitive automotive market.

Improved Profitability: Higher profit margins from AMG vehicles are enhancing the Group’s profitability, allowing for increased investment in other key areas, such as research and development.

Enhanced Brand Value: The strengthened AMG brand is elevating the overall brand value of the mercedes-Benz Group, attracting investors and customers alike.

Stock Performance: Following the spin-off and subsequent revenue reports, Mercedes-Benz Group stock has seen a noticeable increase, reflecting investor confidence in the company’s strategic direction. Analysis of Mercedes-Benz stock shows a 15% increase since the beginning of Q2 2025.

Case Study: The AMG GT 63 S E Performance

The AMG GT 63 S E Performance serves as a prime example of the benefits of the spin-off. The development cycle for this plug-in hybrid was significantly accelerated due to AMG’s increased autonomy. The vehicle’s innovative powertrain,combining a powerful V8 engine with an electric motor,delivers extraordinary performance and efficiency. Initial sales figures for the GT 63 S E Performance have exceeded expectations, demonstrating the market’s appetite for high-performance hybrid vehicles. this success story highlights AMG’s ability to rapidly innovate and bring cutting-edge technology to market.

Benefits for Consumers & the Automotive Industry

The AMG spin-off and subsequent revenue surge have broader implications for consumers and the automotive industry as a whole:

Increased Innovation: AMG’s focus on performance and technology is driving innovation in the automotive sector, leading to the development of more advanced and exciting vehicles.

Greater Choice for Consumers: The expansion of the AMG model range,particularly in the EV segment,is providing consumers with a wider range of choices to meet their individual needs and preferences.

Competitive Pressure: AMG’s success is putting pressure on other luxury car manufacturers to step up their game and invest in performance and technology.

Advancement of EV Technology: AMG’s commitment to electric mobility is contributing to the advancement of EV technology, accelerating the transition towards a more sustainable automotive future. The development of electric vehicle charging infrastructure is also being supported through partnerships.

Practical Tips for Investors & Car Buyers

Investors: Monitor Mercedes-Benz Group’s financial reports closely, paying particular attention to AMG’s performance. Consider the