No plans to introduce new earnings guidance, price hikes

Mercedes-Benz (MBG.DE) does not have any plans to rid it through the Trump tariff.

The CEO first told the Keelnis Yahoo Viannce in a call on Monday afternoon that the company does not have plans to raise prices to compensate for the tariffs from the Trump administration. In the same manner, Källenius said that the company will not return the financial expectations that it withdrew several weeks ago amid uncertainty.

“What we decided to do in this current environment is to send a sign of stability towards our customers, as well as our business partners.” “And we will see how things develop. We are in a situation that we do not have to make hasty decisions about such things [price increases]And we will not. So I do not want to withdraw the crystal ball now and say what the world will look after six months from now, but our priority in the United States market will be long -term growth, while taking care of our great customer base. “

The Trump administration has thrown a small bone on international auto manufacturers for several weeks, as it moved to relax on some of the 25 % definitions on cars and car parts.

The new executive order for automotive companies allows to be compensated by up to 3.75 % of the value of vehicles collected in the United States to help compensate for the cost of customs tariffs in the first year. In the second year, the discount will be 2.5 %, before going out in the third year.

Read more: Latest news and updates on Trump’s tariff

More than half a vehicle was imported 374,000 vehicles sold in the United States last year, according to the company. About 13 % of German car exports go to the United States, more than any other country, according to data from the German Automobile Association VDA.

Källenius added that Mercedes will start producing GLC cars designated in its factory in Tusciaosa, Alaa, in an attempt to produce some customs tariffs locally and avoid some definitions.

Amid the difficult background, Mercedes -Benz said in late April that the profits of the first quarter decreased by 43 % from last year to 1.73 billion euros. revenue decreased by 7.4 % year on an annual basis to 33.22 billion euros.

The company’s car’s sales decreased by 4 % in the first quarter. While sales in North America advanced by 1 %, it decreased by 7 % in Europe and decreased by 10 % in China in simple profit.

“No,” Källenius said about whether the guidance will be restored while receiving more clarity on the definitions. “In the first quarter, we have decided to invite us to say that this is the position in which it seems that there is new information every day, or certainly every week, if you do not have to change your opinion four times in one month, this does not make sense.”