Part 2.3: Why are 300 cars sold in the Americas, that need to make up for the -600.000€ deficit?

Question

In total there are 50.000 cars sold, 60% in the region EU and USA which is 30.000 cars. USA is making 30% of the regions volume which would be 30.000 x 30% = 9000 cars. Where does the number 300 come from then? Do I need to use the usage of sold cars here?

Answer 1

Hey!

I would argue that the 300 cars come from calculating how many additional units need to be sold in the Americas to offset the €600,000 deficit. Since the total number of cars sold is 50,000, with 60% in the EU and the USA, that gives 30,000 cars in these regions. Within this, the USA accounts for 30% of the volume, meaning 9,000 cars. To determine the 300 additional cars, you need to consider the revenue or margin per unit and how many extra units are required to compensate for the deficit. If you’re unsure, checking the contribution per car in the Americas and dividing the total deficit by that value will clarify the calculation.

Hope that helps! Alessa

Answer 2

Thank you for your question and your interest in our case. You are absolutely right: out of the 50,000 vehicles, 60%—which equals 30,000 units—are sold in the EU and the USA. The U.S. share of this is 30%, which correctly amounts to 9,000 vehicles.

To arrive at 900 units, we also need to consider the proportion of "AMG Manufaktur" vehicles in total sales. For the EU/USA region, this proportion is given as 1/30 (see Exhibit 2.2 "Regions with units & revenue overview").

We hope this helps with solving the case. Feel free to reach out with any further questions! Best regards, Mercedes-Benz Management Consulting