Automakers Lower Profit Forecasts Amid Rising Material and Logistics Costs

Several automakers, including Mercedes-Benz and General Motors, have lowered their profit forecasts due to increasing material and logistics costs. Mercedes-Benz has lowered its profit forecast for its passenger car business, citing rising costs and a decline in sales. General Motors has also warned that its profit margins will be squeezed if material and logistics costs continue to rise.

The cost pressure is not limited to these two companies, as several other automakers have also expressed concerns about rising costs. Nissan and Honda have both warned about the impact of rising material costs, with Nissan citing the impact of the Middle East conflict on logistics costs.

The cost pressure is expected to continue into 2027, with General Motors warning that its profit margins will be squeezed if material and logistics costs continue to rise. Mercedes-Benz has also lowered its profit forecast for 2027, citing rising costs and a decline in sales.