Mercedes-Benz Battles Worker Revolt Over Pay and Hours as Shares Skid 30%
28.06.2026 - 15:33:58 | boerse-global.de
Tensions between Mercedes-Benz management and its workforce have boiled over after the auto giant unilaterally postponed a contractual bonus and demanded a return to the 40-hour work week without any pay increase. The so-called transformation component — 18.4% of a monthly salary — was due to be paid to roughly 90,000 employees in July 2026, but will now arrive no earlier than 2027. Chairman of the supervisory board Martin Brudermüller has also called for an end to the 35-hour week, a move the works council swiftly rejected.
The clash comes as the Stuttgart-based carmaker grapples with a sharp deterioration in its financial performance. Full-year earnings for 2025 collapsed to €5.3 billion from €10.4 billion, and the first quarter of 2026 offered no respite — profits fell a further 17.2%. Operating margins have slumped to around 5%, well below the company’s own targets, as mounting global trade barriers, rising energy costs in Europe, and intensifying competition from Chinese rivals such as BYD eat into profitability.
China, once a cash cow for Mercedes-Benz, has become a major drag. Sales there dropped 27% in the first three months of 2026. While orders for the new electric CLA are strong enough in Europe to fill books well into the second half of the year, Chinese registration numbers remain stubbornly low. Despite these headwinds, the board confirmed its full-year guidance as recently as late April.
Should investors sell immediately? Or is it worth buying Mercedes-Benz?
Investors have been voting with their feet. The stock closed Friday at €43.27, down 3.23% on the session, and within a whisker of its 52-week low of €43.01. Since January, the share price has shed nearly 30%.
Technical indicators point to deep oversold territory — the relative strength index stands at 29.2 — while the stock trades more than 21% below its 200-day moving average of €55.05, underscoring a bleak medium-term picture.
The next flashpoint for the company will come on July 28, when it publishes second-quarter results. Analysts are expected to grill management on how far China’s weakness is hurting earnings and what further cost-cutting measures might be on the table. In the near term, the trajectory of Mercedes-Benz shares hinges on whether the labor conflict escalates or a compromise can be reached. For now, the mood on the shop floor and on the trading floor remains equally strained.
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