Mercedes-Benz sees first annual profit growth in three years

German automakers Mercedes-Benz and Porsche have reported contrasting financial results, with Mercedes-Benz posting higher group profits while Porsche announced further job cuts due to declining profitability, according to dpa.

Mercedes-Benz reported that its group net profit rose 13.5 percent in the second quarter of the year to approximately 1.09 billion euros, compared with 957 million euros in the same period last year, CE Report quotes Kosova Press.

This marks the first time in three years that the company has recorded year-on-year profit growth.

However, revenue declined 3.3 percent to just over 32 billion euros, while global sales of cars and vans fell 6 percent.

Mercedes suffered its biggest setback in China, where vehicle sales dropped 30 percent.

Mercedes-Benz CEO Ola Källenius said the company had stayed on course despite challenging market conditions and would focus on launching new models during the second half of the year.

Meanwhile, Porsche announced that it will eliminate an additional 5,000 jobs in Germany by the end of 2035 as part of a 2.1 billion euro restructuring plan aimed at restoring profitability.

The workforce reductions will affect the company's main plant in Stuttgart-Zuffenhausen and its research and development center in Weissach.

However, Porsche said there will be no compulsory layoffs before the end of 2035. The workforce reduction will instead be achieved through retirements, early retirement, voluntary departures, and natural attrition.

As part of the cost-saving program, employees will also face delayed wage increases, reduced year-end bonuses, and tighter restrictions on working from home.

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