Rounding off two days of celebrations following the launch of a new race car emoji, Lewis, the team, and our Official Messaging Partner WhatsApp took over Fifth Avenue in New York City for a thrilling demonstration run.

The seven-time World Champion got behind-the-wheel of W12 and was joined by a life-sized version of the recently launched emoji race car. The run marked the first-ever live demonstration of an F1 car in Manhattan and also marked WhatsApp’s double-digit growth in the US.

Lewis said: “That was epic! It has always been a dream of mine to drive an F1 car down Fifth Avenue in New York City. Seeing the crowds and everyone’s excitement was awesome. To do something like this, when you think about the incredible history of this city, is incredible.

”I want to say a huge thank you to WhatsApp and the Empire State Building for making it possible. I use WhatsApp to communicate with all my family and friends, staying in touch when we’re travelling the world. To collaborate with them on a day like this is something I’ll never forget.”

It caps a stunning weekend of events in the city that never sleeps, including the lighting up of the Empire State Building, a dynamic light show, car displays, and pit stop exhibit.

Toto added: “I’ve done many events in the past 12 years, but this tops it all. Seeing Fifth Avenue shut down for a Mercedes-AMG PETRONAS F1 Team car to run was spectacular. That is true even by New York standards!

“To be able to do this in celebration of our partnership with WhatsApp, and showcasing our relationship, is fantastic. WhatsApp is our default communication tool, end-to-end encrypted and safe. It is vital for our team and our partnership is a natural fit.”

Mercedes-Benz Group AG (ticker symbol: MBG) reported Free Cash Flow from the industrial business at a solid €2.23 billion (Q1 2023: €2.16 billion) in the first quarter with strong cash conversion including positive working capital developments. Group Earnings Before Interest and Taxes (EBIT) totalled €3.9 billion (Q1 2023: €5.5 billion), reflecting lower raw material prices, tight cost control and a strong performance at Mercedes-Benz Vans. These effects partially offset lower sales at Mercedes-Benz Cars where supplier bottlenecks and model changeovers in the Top-End segment also led to a less favourable model mix. Group revenue came in at €35.9 billion (Q1 2023: €37.5 billion). 

“Mercedes-Benz delivered a solid Free Cash Flow in the first quarter thanks to our disciplined go-to-market approach, our desirable products and despite the volatile economic environment and external challenges. While we remain vigilant about the global macroeconomic and geopolitical outlook, we confirm our full-year financial targets for 2024.” 
Harald Wilhelm, Chief Financial Officer of Mercedes-Benz Group AG

Investments, Free Cash Flow, Net Liquidity

The Free Cash Flow from the Industrial Business in the first quarter reached €2.23 billion (Q1 2023: €2.16 billion), supported by an adjusted Cash Conversion rate of 1.0 at Mercedes-Benz Cars.

The Net Liquidity from the Industrial Business rose by 6% to a strong and very comfortable level of €33.6 billion (end of 2023: €31.7 billion). This included a share buyback of approximately €300 million in the first quarter. The Group’s investments in property, plant and equipment in the first quarter totalled €0.7 billion (Q1 2023: €0.8 billion). Research and development expenditure fell to €2.2 billion (Q1 2023: €2.5 billion). 
Divisional results

Earnings Before Interest and Taxes at Mercedes-Benz Cars reached €2.5 billion (Q1 2023: €4.1 billion) and resulted in an adjusted Return on Sales of 9.0% (Q1 2023: 14.8%) mainly due to a temporary decline in volumes and model transitions in the Top-End segment as well as higher lifecycle management costs to keep products at the cutting edge. Top-End vehicles were constrained by model changeovers of the G-Class as well as the Mercedes-AMG derivatives of the E-Class and GLC, as well as supply-chain bottlenecks. Mercedes-Benz Cars sales reached 463,000 units (-8%) in the first quarter, with solid results in all regions except Asia. Despite a decline in S-Class sales, it remains the undisputed leader in all key regions.

Overall, pricing remained at a high level in Q1. Sales are expected to increase in the coming quarters with the Top-End vehicle mix expected to improve in the second half of the year. The EV adoption rate has slowed across the industry. In the transition from ICE to BEV vehicles, Mercedes-Benz plug-in hybrids are expected to play an important role. In Q1 Mercedes-Benz initiated BEAT26, an efficiency program to lower material costs in procurement, in close collaboration with its suppliers.

Mercedes-Benz Vans posted a strong start into the year with healthy net pricing supported by strong product substance leading to very good financial results. The adjusted Return on Sales for Mercedes-Benz Vans rose to 16.3% (Q1 2023: 15.6%) thanks to increased global sales (+7%) driven by positive product structure, especially from commercial Vans (+11%). Regionally, the important markets China (+27%) and the United States (+15%) contributed to the strong Q1 sales. Revenue increased by 6% to €4.9 billion (Q1 2023: €4.6 billion) in the first quarter and the Earnings Before Interest and Taxes increased by 22% to €933 million (Q1 2023: €762 million). BEV sales declined but are expected to rise with the full availability of the newly launched facelifts of the EQV, eVito and the new eSprinter. 

Compared to the first quarter of the previous year, Mercedes-Benz Mobility almost doubled its new business volume for BEVs to €2.0 billion (Q1 2023: €1.2 billion). Overall, at the end of March 2024, the contract volume amounted to €134.7 billion and is thus at the same level as year-end 2023 (FY 2023: €135.0 billion). At €14.8 billion, the new business of Mercedes-Benz Mobility is also on prior-year level (Q1 2023: €14.7 billion). The adjusted EBIT decreased to €279 million mainly due to a lower interest margin and higher cost of credit risk (Q1 2023: €539 million). As a result, the adjusted return on equity (RoE) decreased to 8.5% (Q1 2023: 15.6%).

Share buyback execution update

On 21 February 2024, Mercedes-Benz Group AG resolved to implement a share buyback policy. Based on this policy, the future Free Cash Flow from the Industrial Business (as available post potential smallscale M&A) generated beyond the approximately 40% dividend payout ratio of Group Net Income shall be used to fund share buybacks with the purpose of redeeming shares. As part of a buyback programme announced in February 2023, Mercedes-Benz Group AG intends to acquire own shares worth up to €4 billion (not including incidental costs) on the stock exchange and to then cancel them. Repurchases for this programme are well on track. A further €3 billion share buyback programme, announced in February 2024, is now scheduled to begin in May 2024 and then run in parallel with the buyback program announced in February 2023. Both buyback programs are expected to be completed in the first quarter of 2025. By the third quarter 2024, buybacks are expected to have reached a total of €4 billion and to then reach up to €7 billion in Q1 2025 before the Annual General Meeting that year.
Outlook

The economic situation and automotive markets continue to be characterised by a degree of uncertainty. In addition to unexpected macroeconomic developments, uncertainties for the global economy and the business development of Mercedes-Benz Group may arise from geopolitical events and trade policy. 

The company sees unit sales of Mercedes-Benz Cars at the prior-year level. Current supply bottlenecks are on the way to easing in regard to the GLC and E-Class, with further improvements expected. Sales levels in the first quarter are seen as the trough, with second quarter volumes expected to be better. Total unit sales are still seen at the prior-year level with Core segment sales benefiting from the E-Class and GLC this year, and Top-End Vehicle sales improving from first-quarter levels, due to product transitioning. 
In Europe overall, sentiment is seen unchanged. 
In China availability will improve, especially for the E-Class. Thanks to very good acceptance of our current product lineup and availability, growth potential is seen from the portfolio and availability side. However, the overall market is seen with caution.   
In the United States, solid momentum is seen for sales and demand. A positive-year-over-year development is expected because of SUV’s and the GLC in particular.   
The xEV share is expected to remain at approximately 19% - 21% of new car sales, even as production of the all-electric smart fortwo model came to an end in March.
The adjusted Return on Sales (RoS) is expected in the range of 10% - 12%. An increase in sales volume over the coming quarters and an improvement in product mix in the second half of 2024 is expected. Mercedes-Benz wants to hold and defend pricing at current levels. 
Some material tailwinds on raw material costs are seen and further headwinds on supply-chain related costs are expected. On a full-year basis a tailwind is expected on material costs.
Research & Development spending is expected to be flat. Investments in property plant & equipment are seen significantly higher. 
The adjusted cash conversion rate (CCR) corridor for Mercedes-Benz Cars remains at 0.8 to 1.0. Cash generation is expected to continue. 

Strong Q1 performance at Mercedes-Benz Vans provides a comfortable cushion for the remainder for the year. Market demand is expected to soften in the private and commercial van segments. Considering current macro developments and uncertainties in regard to the second half of 2024, the adjusted RoS is expected to remain in the range of 12% - 14%. Full-year guidance on sales, xEV sales, research and development as well as investment in property, plants and equipment are unchanged. The adjusted CCR for Mercedes-Benz Vans is seen remaining at 0.6 to 0.8.

The adjusted Return on Equity at Mercedes-Benz Mobility is seen unchanged in the range of 10% - 12%. Q1 is seen as the trough, with improvements expected over the second half of 2024, despite increasing ramp-up costs for charging infrastructure. Coming from 8.5% adj. RoE in Q1, positive effects from increased acquisition margins are expected on the portfolio margin. The cost of credit risk is seen improving from Q1 levels but is expected at an overall higher level compared to 2023.   

The Mercedes-Benz Group confirms its group guidance. Group revenue in 2024 is expected to remain at the prior-year level, with Cars, Vans and Mobility seen unchanged. Group EBIT is expected to be slightly below the 2023 level, resulting out of divisional guidances. Group Free Cash Flow from the Industrial Business is seen slightly below the very strong levels from 2023, due to lower EBIT at Cars and Vans and lower CCR at Vans.

Link to press information “Sales figures Q1 2024”: media.mercedes-benz.com/sales

Link to capital market presentation Q1 2024: group.mercedes-benz.com/q1-2024/en

[1] The all-new Mercedes-Benz G 580 with EQ Technology (combined energy consumption: 30.3-27.7 kWh/100 km | combined CO₂ emissions: 0 g/km | CO₂ class: A). The specified values were determined in accordance with the WLTP (Worldwide harmonised Light vehicles Test Procedure) measurement method. The ranges given refer to ECE markets. The energy consumption and CO₂ emissions of a car depend not only on the efficient utilisation of the fuel or energy source by the car, but also on the driving style and other non-technical factors.

George Russell

We were struggling throughout the whole of Qualifying to get the tyres into the right place. They work within a very small window, and we saw with Lewis in Q2 that, if we were able to get them in a better place, we had good speed. This is the same story for everyone though. We have to be realistic and, unless we get the perfect lap, P7 and P8 is about where our car is at currently. We know we have work to do and hopefully tomorrow will be better.

In the Sprint earlier in the day, I made a good start but got caught on the outside and lost a few positions. After that, I was stuck in a DRS train, so it was quite a processional race. Hopefully we will have a better Grand Prix on Sunday and move forwards.
Lewis Hamilton       

Overall, it’s been a much more positive day than yesterday. That said, these tyres are so sensitive and trying to get them to work consistently lap-to-lap is a challenge. The track temperature and grip was similar throughout Qualifying but we still struggled to deliver the maximum potential on each lap. We had that glimpse of what was possible at the end of Q2, but we couldn’t deliver it in Q3. It’s an area we are focused on improving.

I gave it everything in the Sprint; it was a tough battle out there. Contact is never intentional at the first corner, and I went for a gap. It closed quickly though and several of us connected. After that, I was fighting hard to get past the Haas of Magnussen, and I enjoyed the racing. The penalty was unfortunate, and it was a shame that it cost us that final point.
Toto Wolff, Team Principal & CEO

We have seen once again how difficult it is to get the tyres in the right window. We of course don’t blame the tyres for that, and we need to look at ourselves and our car to understand how we can get the tyres more consistently into the correct operating window. We were able to get it right at the end of Q2 and Lewis’ was P3, with just 0.15s off P1. Unfortunately, we couldn’t replicate that for Q3.

In the Sprint, cars that were quick on the straight but not necessarily through the corners were able to hold position. We had more pace but couldn’t show it. We therefore made some changes after the Sprint that will hopefully help us in the race tomorrow. We are starting slightly further forward than we were this morning so let’s see what we can do.
Andrew Shovlin, Trackside Engineering Director

The Sprint was disappointing, but we were realistic in our expectations given our grid positions. George lost out because of the first corner incident and couldn't break through the DRS train. Lewis fared better off the line but then spent most of the race battling to get past the Haas of Magnussen. We knew we were on a high wing level and that would have been OK if we'd qualified further forward. Unfortunately, when you are racing in the middle of the pack, it isn't ideal.

Going into Qualifying, we modified the set-up slightly and changed our wing level. The car was improved but it was still difficult to land the tyres in the right window. We don't seem to be the only team struggling with that but when we got it right, the pace was strong. That said, we are well aware that we have a lot of work to do in order to improve the car. If we can do so, that should help us deliver that stronger pace more consistently.

Toto Talks Miami

We’re ready for Miami and the first US race of the year. It is a challenging circuit and, with the second Sprint of 2024, will provide another interesting test for the team. We didn’t perform at our best in China, making too many set-up changes ahead of Qualifying. That put us on the back foot for the rest of the weekend, although both drivers did well to bring home points. We will be looking to put in a stronger showing in Miami and optimise the car. We know we need to add more performance and will bring our first small upgrades of the season this weekend.

Miami is one of the busiest off-track events of the year for the team, too. We’ve already enjoyed a fantastic few days in New York with our partner WhatsApp. It’s great to see the growth of both their brand and F1 in the US, to such an extent that we took over the Empire State Building and held a demonstration run down Fifth Avenue. It highlights the impact of our sport in the USA, and we look forward to building on that growth. We have a full schedule of events in Florida and look forward to a positive week on and off the track.
Fact File: Miami Grand Prix

    The 5.412 km Miami International Autodrome became the 11th track to host a Grand Prix in the USA when it first appeared on the calendar in 2022.
    It became the 76th different venue to host a Formula One Grand Prix.
    The track in Miami ranks high in terms of top speeds achieved comparative with other circuits; only Monza, the Circuit Hermanos Rodriguez in Mexico and Las Vegas expected to see higher top speeds this season.
    Miami - together with Baku - is among the highest circuits for drag sensitivity. Cars can reach a maximum speed of over 330km/h while accelerating down the back straight.
    Several small tweaks were made to the track between its first race in 2022 and the second edition last year. These included the track being resurfaced with a new aggregate ahead of 2023, offering improved grip for the drivers with the aim of increasing overtaking opportunities.
    Along with Austria and Las Vegas, Miami has the highest number of heavy braking events on the calendar with three.
    2024 will be the first time Miami has hosted a Sprint race weekend on the F1 calendar. After the previous race in China, this will be the second of six Sprint races in 2024.
    The circuit runs through the grounds of the Hard Rock Stadium, home of the Miami Dolphins NFL team. As well as hosting six Super Bowls in its history, the site is also home to the ATP and WTA Miami Open tennis tournaments every March. The F1 paddock itself will again be set up on the pitch of the stadium.
    Off track, the team will return with its Miami Club guest viewing experience for the third straight year, once again providing those in attendance with one of the best weekend hospitality experiences in all of sport.

Lewis Hamilton

To be sat on the front-row for the Sprint was a great feeling. Racing into turn one and taking the lead reminded me of what I love so much about this sport! It was a challenging race but to get second was great.

We knew Qualifying would be much more tough this afternoon though. I made some sizeable set-up changes after the Sprint to try and improve the car in the slow speed turns. It wasn’t too bad in some corners, but I struggled elsewhere. It was challenging to get the rear tyres to stop into turn 14 and that’s where I locked up on my final lap. If I hadn’t had that, I would have made it through to Q2. I’ll be giving it my best shot tomorrow. We can still have some fun even if we are starting from P18.
George Russell

We didn’t have our best day today. With the strong wind, it was very challenging out there. The conditions had changed from Friday too, so we had to adapt. We took the Soft tyre for the Sprint and it was definitely worth the gamble. It performed OK and it gave us some good learnings for tomorrow. Ultimately, we did well to score a point.

Qualifying was also tricky. My first lap in Q2 was looking very strong but the red flag forced us to abort. We had to use another set of new tyres to progress to Q3. Without that, we would have had two new sets for the final part of Qualifying and it could have been a different outcome but who knows. We are in that fight between P3 and P8 and, unfortunately, we’ve found ourselves at the back end of that battle in the last few races in Qualifying. Small differences can have a major impact.

It is hard to predict what will happen tomorrow. It’s all to play for with those cars around us so hopefully we have the pace to move forward.
Toto Wolff, Team Principal & CEO

Second in the Sprint was a good result. Lewis made a very strong start and that opened up the potential of a strong finish for us. With George, the Soft tyre was a bit of an experiment that we wanted to try. It held on better than expected and that opens up more possibilities for Sunday. Ultimately, we knew that we had outperformed where the true pace of our car was in the Sprint.

We therefore decided to make some big set-up changes between the Sprint and Qualifying to try and improve the car’s low-speed performance. The drivers chose to go in pretty different directions to support our learning process, but it clearly didn’t work for us today on a single lap. Lewis would have progressed comfortably out of Q1 without a lock-up in Turn 14 that cost him more than half-a-second.

George made it through to Q3 solidly but had just one set of new tyres available. He set his fastest lap of the session, but like two weeks ago in Suzuka, was at the back of a close group where a couple of tenths equate to four or five grid positions. We now need to focus on racing and recovering strongly tomorrow and moving forwards with both cars.
Andrew Shovlin, Trackside Engineering Director

It was great to be able to hang onto P2 with Lewis in the Sprint and for George to make enough places up to get into the points. However, neither driver was happy with the car. The wind rotated overnight and made the balance very inconsistent. In some corners we were suffering with understeer and in others the rear was very weak. To try to address that, we made extensive changes to both cars going into Qualifying. The car was quite different and ultimately that caught Lewis out in Q1 with a big lock into the hairpin on his final lap. Without that he would have gone through comfortably.

George managed a little better, but it still wasn't an easy car to drive. With only one new set of Soft tyres for Q3, P8 was ultimately the best we could do. We're at the back of a tight bunch and small steps will change the picture quite quickly, but right now we're not quick enough. We'll run the usual simulations this evening to understand how to best optimise the situation for tomorrow, but we're likely going to have to look for the opportunities to do things differently to others.