Mercedes-Benz Faces Worker Revolt as It Defers Bonuses and Demands Longer Hours
29.06.2026 - 01:01:08 | boerse-global.de
Mercedes-Benz has ignited a fresh labour conflict at its German plants, pushing through a cost-cutting package that delays a significant bonus payment and demands a five-hour increase in the working week with no extra pay. The moves, affecting roughly 90,000 employees, have prompted the works council to threaten resistance as the carmaker scrambles to shore up its competitiveness.
At the heart of the plan is the so-called "transformation component" – a special payment equal to 18.4% of a monthly salary originally earmarked for July 2026. The company has now postponed that payout to 2027. Simultaneously, management wants to lift the standard weekly hours from 35 to 40 without wage compensation, arguing that only such drastic steps can keep the domestic factories viable against international rivals.
The urgency stems from a brutal profit squeeze. Mercedes-Benz reported a net profit of €5.3 billion for last year, effectively halved from the prior period. The slide continued into the first quarter of 2026, with group revenues falling to around €31.6 billion and operating earnings shrinking. China – the group's most important market – has been a particular drag, with vehicle sales there tumbling 27% year-on-year amid a ferocious price war and disappointing demand for the all-electric CLA EQ model.
Should investors sell immediately? Or is it worth buying Mercedes-Benz?
Investors have been heading for the exits. On Friday, the stock closed down 3.23% at €43.27, just above a fresh 52-week low of €43.01 touched during the session. Year-to-date the shares have lost nearly 30%, and the relative strength index now stands at 29.2, signalling deeply oversold conditions. The distance below the long-term moving average has stretched to more than 21%.
Analyst opinions diverge sharply. Bernstein Research maintains a "market-perform" rating with a €61 price target, while Kepler Cheuvreux has slashed its target from €57 to €48, keeping a "hold" stance on weak margin and earnings prospects. An additional risk looms from Brussels: the European Commission is probing extra tariffs on Chinese plug-in hybrids, a move that could invite Beijing to retaliate against high-margin export models such as the S-Class.
Despite the mounting headwinds, management has stood by its full-year guidance issued in April, forecasting flat group revenues and a significant jump in operating profit. The first real test arrives on 28 July 2026, when Mercedes-Benz releases its second-quarter figures. A miss on those numbers would likely trigger another leg down in a stock already clinging to its floor.
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