German automaker Mercedes-Benz will raise its prices further in 2023 to counter rising costs. Harald Wilhelm, Chief Financial Officer of the company, said in a statement on Thursday that they will follow a strategy in this direction.
Wilhelm said, “How effective will price competition be in the coming quarters? We're going to be a little more careful… there are still cost increases that we need to be mindful of,” he said.
In its predictions for 2023, Mercedes-Benz predicted that tight monetary policies and inflation in some countries may weaken consumer demand and economic growth; however, due to strong order taking, the group raised its earnings expectations.
Noting that supply chain problems and pressure on energy prices eased, the company predicted that the world economy would continue to be calm and monetary policy would continue to affect consumers.
In the statements made on Thursday, it was stated that inventory increased with the implementation of the direct selling model and the introduction of new models.
According to Mercedes-Benz, the supply chain situation has "significantly improved," which paints a different picture from the results Porsche announced on Wednesday. Porsche has stated that it struggles with supply issues on a weekly basis, especially in key components for electric vehicles.
