Mercedes reports profit plunge on China woes

Frankfurt, Germany: German luxury carmaker Mercedes Benz said on Friday its profits in the third quarter plunged by more than 50 percent, hit hard by...

Frankfurt, Germany: German luxury carmaker Mercedes-Benz said on Friday its profits in the third quarter plunged by more than 50 percent, hit hard by weakness in the key Chinese market.

Net profit came in at 1.72 billion euros ($1.86 billion), down from 3.7 billion euros a year ago, while sales slipped almost seven percent to 34.5 billion euros, the group said.

Vehicle deliveries fell three percent, dragged down by a 13-percent fall in China. Sales of its most profitable luxury cars worldwide fell 12 percent.

The poor results were due to a "challenging market environment and fierce competition, particularly in China", the auto manufacturer said.

Mercedes chief financial officer Harald Wilhelm conceded that the earnings "do not meet our ambitions".