Mercedes-Benz Cuts 2026 Profit Outlook on Tough China Market
The German automaker lowered its margin target to 2% to 3% as China car sales fell 31% and fourth-quarter costs rose.
- On Tuesday, Mercedes-Benz cut its 2026 profit margin outlook, citing weaker conditions in China and higher fourth-quarter costs amid mounting pressure on German automakers.
- German carmakers continue to struggle in China, the world's largest auto market, where slowing demand and intense local competition erode sales and pricing power. Mercedes and BMW remain heavily exposed.
- The premium automaker now expects an adjusted return on sales of 2%-3% in 2026, down from previous guidance of 3% to 5%. Core car sales fell 8% year-on-year in the third quarter.
- Shares fell as much as 5.5% on Tuesday, trading down around 4% as of 0955 GMT. Rivals BMW and Volkswagen also cut their outlooks earlier this year, blaming the worsening China situation.
- Metzler analyst Daniel Schwarz noted that Porsche has reduced its dependence on China and is pushing into the luxury segment, making the brand less vulnerable to competition from Chinese manufacturers expanding into Europe.
68 Articles
68 Articles
Kreiszeitung
Mercedes-Benz had already published a sales warning in the summer. Now the automaker expects a significantly lower profit.
Competition in the Chinese market plunges the profitability of the passenger car division, which halves its adjusted operating profit despite the pull of sales in Europe and the United States
The German car manufacturer Mercedes-Benz will offer part of the support staff to voluntarily leave the company in the face of the deteriorating market situation. The German car manufacturer Mercedes-Benz is launching a new voluntary separation programme for support staff to improve performance against the background of a deteriorating market environment, written by The Wall Street Journal. The previous day, the company had reduced forecasts for…
Coverage Details
Bias Distribution
- 42% of the sources are Center, 41% of the sources lean Right
Factuality
To view factuality data please Upgrade to Premium
