Mercedes-Benz Workers Walk Off Job on Anniversary as China Sales Slide and Shares Plunge
Veröffentlicht: 30.06.2026 um 03:25 Uhr, Redaktion boerse-global.de
Hundreds of assembly-line employees at Mercedes-Benz’s Bremen plant staged a spontaneous walkout Monday, bringing production in Hall 9 to a standstill on the very day the company was supposed to celebrate its 100th anniversary. The protest, involving roughly 500 workers, erupted after management decided to push a promised special bonus payment back to 2027. The move is the latest flashpoint in a widening rift between the Stuttgart-based automaker’s board and its workforce as cost-cutting measures intensify.
The labour dispute runs far deeper than a single delayed payout. The supervisory board is reportedly weighing a sharp increase in working hours, with the current 35-hour week potentially rising to 40 hours without any financial compensation for the extra time. Such a change would mark a dramatic reversal of the concessions that have been a hallmark of German automotive labour agreements for decades.
Margins shrink, China crumbles
The harsh tone inside the factories reflects a grim financial reality. Mercedes-Benz posted an operating result of just €1.9 billion for the first quarter of 2026, a 17% year-on-year decline. The full-year net profit for 2025 had already been cut in half. At the heart of the slump is China, the company’s single most important market. Sales there dropped roughly 27% in the first quarter and then accelerated their decline in May, tumbling 35%. The damage is concentrated on precisely the high-margin models that CEO Ola Källenius bet the house on — the S-Class and Maybach — as local Chinese rivals pile pressure on the group’s electric-vehicle lineup with cheaper, more advanced offerings.
The adjusted return on sales in the passenger car division consequently sank to around 4.1%, the lower end of the company’s own target band. Management has responded with an efficiency programme dubbed “Next Level Performance” aimed at slashing fixed costs and streamlining administrative functions.
Should investors sell immediately? Or is it worth buying Mercedes-Benz?
Shares test floor, Jefferies stays bullish
Investors have been voting with their feet. The stock closed Monday at €43.57, barely above the 52-week low of €42.64 touched earlier that same session. Since the start of the year, the shares have lost more than 29% of their value and now trade nearly 21% below their 200-day moving average. Technical indicators point to extreme oversold conditions: the relative strength index stands at 31.3.
Jefferies, however, sees a buying opportunity. The brokerage recently upgraded Mercedes-Benz to “Buy” with a price target of €52, though it cautioned that lingering trade conflicts and potential US tariffs remain significant risks.
Beyond cars: branded residences and onboard AI
In an effort to diversify revenue streams and deepen customer loyalty, Mercedes-Benz is pushing into luxury real estate. Branded residential complexes are under development in Dubai and Miami, targeting high-net-worth individuals who might otherwise drift toward rival luxury goods. The company is also betting on technology: a partnership with artificial intelligence specialist Liquid AI aims to embed machine-learning capabilities directly into vehicle hardware, enabling faster, cloud-independent processing with stronger data privacy.
Mercedes-Benz at a turning point? This analysis reveals what investors need to know now.
What lies ahead
Analysts expect the passenger car margin to fall further to roughly 3.2% in the second quarter, while the van division should hold up better at about 8.8%, buoyed by a richer product mix and the return of six- and eight-cylinder engines in Europe and the US. The dividend, meanwhile, offers a modest cushion — €3.50 per share was paid for 2025, and the market forecasts around €3.40 for the current year.
Mercedes-Benz will host a pre-close call for the second quarter on 14 July, with the full interim report due on 28 July. Until then, internal battles over working conditions and site security are likely to dominate the agenda. The broader environment offers little respite: recent profit warnings from BMW and drastic cost-cutting at Volkswagen underscore a deep structural crisis gripping Europe’s automotive industry.
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