Mercedes-Benz Draws a Harder Line on China as Jefferies Steps Back and German Plants Walk Out
Published on 11/11/2026 at 18:32 | Editorial boerse-global.de
Mercedes-Benz has told investors, in effect, that its Chinese playbook no longer works. Speaking at the Automobilwoche congress in Berlin, chief executive Ola Källenius said the group must rework both its business model and its operating systems in China, where the luxury segment is running 30 percent below year-earlier levels. His remarks landed alongside a downgrade and a fresh set of third-quarter figures that show the strain.
Jefferies cuts to Hold
Jefferies lowered its rating on the stock from "Buy" to "Hold" yesterday and trimmed its price target to EUR 44 from EUR 46. Analyst Philippe Houchois pointed to the scale of the overhaul the business model requires and to a liquidity profile that no longer stands out from peers. He also flagged the absence of clarity on whether a further share buyback will follow the current one.
That programme carries a maximum volume of EUR 1 billion and permits purchases through 6 April 2027. Between 2 and 6 November, Mercedes-Benz reported buying back roughly 567,000 of its own shares.
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Profit and cash under pressure
The reassessment follows a softer earnings print. On 28 October the carmaker reported a 15 percent decline in adjusted group EBIT, which came in at EUR 1.78 billion for the third quarter of 2026.
Free cash flow from the industrial business told a sharper story: EUR 172 million for the quarter, against EUR 1.37 billion a year earlier. Management attributed the drop chiefly to a build-up in working capital and higher inventories of new vehicles.
Charging network widens
On the infrastructure side, Mercedes-Benz and Electra agreed on 3 November to extend their fast-charging partnership. Customers of the brand gain access to more than 800 Electra stations and over 5,000 charge points across ten European countries. The deal also folds the 47 Mercedes-Benz High-Power Charging hubs in Europe into the Electra network, so the arrangement runs in both directions — drivers reach Electra's sites, and the company's own locations join the wider grid.
Two-hour walkout in Ludwigsfelde
Closer to home, workers at Mercedes-Benz and Gestamp joined a two-hour warning strike in Ludwigsfelde on Monday, called by IG Metall Ludwigsfelde over the pay dispute in the metal and electrical industry. The third round of talks for Berlin and Brandenburg had ended on Friday without the sides drawing any closer, and employees at both companies were summoned to stop work on Monday morning.
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Mercedes-Benz Stock: New Analysis - 11 November
Fresh Mercedes-Benz information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
