Porsche Veteran Takes AMG Reins as Mercedes-Benz Shares Languish Near Lows

Mercedes-Benz is leaning on its most exclusive nameplates to pull the company out of a profit slump, handing control of AMG, Maybach and the G?Class to a former Porsche product strategist. Stefan Weckbach, who most recently steered product strategy at Volkswagen’s luxury powerhouse, takes over the Top End Vehicle Group at a time when the three-pointed star’s equity is trading perilously close to its 52?week trough.

Shares in the Stuttgart-based carmaker have shed nearly 29 percent since the start of the year, sliding to around €43.72. That leaves the stock just a hair’s breadth above its recent low, while it sits more than 20 percent below the 200?day moving average – a technical signal that has all but erased any upward momentum. Analysts point to the lack of a clear catalyst for a rebound, with underlying operational challenges overshadowing the company’s centenary celebrations this month.

Those challenges are laid bare in the first?quarter numbers. Mercedes-Benz posted group EBIT of €1.9 billion, but the adjusted return on sales in its core car division slumped to 4.1 percent – a level that barely registers on investors’ radar and sits at the bottom end of the full?year guidance. The division itself contributed just €933 million in operating profit. While the group’s net liquidity remains comfortable at €33.8 billion, the erosion of pricing power and an unfavourable model mix have triggered persistent debate about the brand’s ability to command premium margins.

Should investors sell immediately? Or is it worth buying Mercedes-Benz?

The regional picture is decidedly mixed. Global deliveries in the opening quarter reached around 419,000 vehicles, with Europe recording a 7 percent increase and the United States jumping 20 percent. Yet China, the world’s largest auto market, remains a drag: an intense price war and weakening demand have forced Mercedes-Benz to fight harder for every sale. One bright spot is electric mobility in Europe, where battery?electric vehicle sales rose 34 percent and order intake surged 107 percent, but that has not been enough to offset the pressure from the East.

Weckbach’s appointment – he replaces Michael Schiebe, who will move to the group board at the end of 2025 – signals a renewed bet on the ultra?high end. Luxury models currently represent roughly 15 percent of total car sales, and the company plans to roll out dozens of new vehicles by 2027. The former Porsche executive must now convert that product blitz into sustainable profitability, while heavy spending on autonomous driving and artificial intelligence adds another layer of cost. Until operational improvements materialise, the €62.30 peak set over the past year will remain a distant memory.

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