Berlin, Feb. 20 (BNA): Mercedes-Benz on Thursday launched a fresh cost-cutting plan to revive sales and margins and battle stiff competition as the German carmaker forecast a big drop in earnings in 2025.

Its car division reported a 40% slump in 2024 earnings as sales in the key Chinese and German markets took a battering. Demand in Europe remained below pre-pandemic levels and Chinese consumers opted for more affordable domestic electric models amid an uncertain economy.

Mercedes-Benz said it was targeting a double-digit return on sales but expected a rate of just 6-8% in its car division this year, Reuters reported.

Z.H, S.H.A