Mercedes-Benz to Cut Jobs Amid China Market Pressure
7 Articles
7 Articles
Mercedes Benz intends to resume the voluntary departure programme in Germany in December, amid declining demand in China and rising costs, after reducing its forecast of profits and cash flows during 2026.
Mercedes-Benz's car sales in China fell 31 percent in the third quarter and revenue from the country by 34 percent. As the luxury automaker lowers its profitability target, it is preparing to change its production and supply strategy rather than withdraw from China. 🚆
The collapse of sales in China hampers the accounts of Mercedes, forcing the House to review estimates and start new plans of cuts and exits
Chinese deliveries fell by about a third in the third quarter, and the profitability of the automotive industry has melted. Mercedes promises to stay in China, but is preparing a new savings plan in Germany, with voluntary departures as early as December 2026 and a negotiation on working time.
Mercedes-Benz will present an updated strategy for 2030 and beyond next year, with China remaining a key market despite growing difficulties. The German manufacturer wants to reduce its dependence on profits there, strengthen its local supply chain and increase sales in the United States, while planning a new phase of job cuts in Germany.
VW is expected to have sold 39 percent fewer cars to China in the third quarter, Mercedes is rethinking its strategy. New sales markets are looking for – not only for car manufacturers
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