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(Sharecast News) - Mercedes-Benz has ramped up inventory levels in the US ahead of the introduction of additional trade tariffs which take effect this week, the German auto giant disclosed in a conference call with analysts, as it revealed that sales fell year-on-year in the first quarter.
In a call ahead of its official first-quarter numbers on 30 April, the Stuttgart-based group said that despite solid sales momentum in the US, lower shipments in Europe and China weighed on overall sales figures, which will be lower than the corresponding period of 2024.
According to analysts' notes on Tuesday, Mercedes-Benz said it was increasing stockpiles at the wholesale and dealer level in the US as it attempts to get ahead of 3 April introduction of import duties levied by the Trump administration.
The US accounts for around 16% of Mercedes-Benz's vehicle sales, including its vans business.
While margins in the first quarter were said to be in line with the group's full-year guidance range of 6-8%, the additional 25% tax on US imports are estimated to hit gross margins by 2.5 percentage points, before any actions are taken to mitigate their impact.
Shares were more or less flat at 54.15 in afternoon trade in Frankfurt.
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