Mercedes-Benz Workers Rally as BEV Sales Surge 51% — But China Freefall and Cost Cuts Keep Stock Near Year Lows
Published on 07/10/2026 at 17:43 | Redaktion boerse-global.de
Mercedes-Benz is navigating a deepening internal conflict even as one part of its business shows clear momentum. The automaker posted a 51% jump in battery-electric vehicle (BEV) deliveries, reaching 52,900 units in the second quarter of 2026. Yet that bright spot is being overshadowed by a brutal 30% plunge in China sales — the company's most profitable market — and a mounting standoff with its German workforce.
More than 33,000 employees turned out for protests on July 3 across sites including Sindelfingen, Stuttgart-UntertĂĽrkheim, Bremen, Hamburg, Berlin, Rastatt, Kuppenheim and Germersheim, according to IG Metall. A second wave of demonstrations followed on July 9, and the union has signaled further walkouts ahead, warning of a "hot summer and autumn" for the entire German auto industry if management presses harder on cost cuts.
At the heart of the dispute are two demands. The first: a proposal to raise the weekly working hours from 35 to 40 without extra pay. The second: the postponement of a contractual special payment — equivalent to 18.4% of a month's salary — for roughly 90,000 of Mercedes-Benz's 108,000 German employees. Originally scheduled for July, the so-called transformation bonus is now not expected until 2027.
Management argues that Germany's labor costs are too high to remain competitive globally. In internal communications, the board has stressed the need to lower expenses "with full pressure." But the IG Metall has pushed back sharply, warning that any move toward job cuts or plant relocations could ignite a broader industrial conflict.
Should investors sell immediately? Or is it worth buying Mercedes-Benz?
The financial rationale for the belt-tightening is clear from the quarterly sales data. Outside China, deliveries rose a modest 3%, but that was nowhere near enough to offset the collapse in the country that once drove Mercedes-Benz's premium growth. The margin-rich luxury segment has been hit particularly hard by weakening demand and aggressive price competition from domestic rivals.
The stock reflects the strain. Shares closed at €43.96 on Thursday before edging up to €44.14 on Friday, a gain of 0.41%. That leaves the stock just 3.52% above its 52-week low of €42.64, which was touched on June 29. From the year's high of €62.30 reached in December 2025, the stock has fallen roughly 29%. Year-to-date, the loss stands at 28.4%.
Technical indicators point to persistent bearish pressure. The 50-day moving average sits at €47.96, while the 200-day average is at €54.57 — both well above the current price. The relative strength index of 39.4 edges close to oversold territory, a level that has occasionally attracted speculative buyers in the past.
Market capitalization has shrunk to approximately €42.5 billion, down from the peaks seen just six months ago.
Mercedes-Benz at a turning point? This analysis reveals what investors need to know now.
Analyst sentiment is divided. Jefferies recently upgraded the stock, arguing that the company's full-year 2026 targets remain achievable if efficiency measures take hold. Management has expressed confidence on investor calls, pointing to a major model offensive in the second half of the year as a potential catalyst.
Other analysts remain cautious, citing the fierce discounting in China and the high cost of the ongoing electrification transition. The real test will come later this month: a pre-close call with analysts is scheduled for mid-July, followed by the full quarterly report expected at the end of the month. Those disclosures will reveal whether the cost-cutting program and new-vehicle launches can stabilize operating margins — and whether the simmering labor unrest has begun to pinch production.
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Mercedes-Benz Stock: New Analysis - 10 July
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