Mercedes-Benz on Thursday announced further cost-cutting and more petrol and diesel cars than EVs in its new product range, in a bid to revive margins as the company braces for a sharp drop in earnings in 2025.

The luxury-car maker aims to slash production costs by 10% over the next couple of years, including shifting some manufacturing from Germany to lower-cost countries.

Mercedes-Benz stock fell in overseas trading after the German auto maker reported better-than-expected earnings but gave an outlook that doesn’t inspire the passion drivers might feel for a 300 SLR sports car.

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.

Mercedes-Benz warned of looming cost cuts Thursday and gave a bleak outlook for 2025 after its profits plunged almost a third last year amid a slump in China and slowing