Mercedes-Benz Faces Washington Delay, Union Standoff and a Stock Stuck Near Its Lows
Published on 09/26/2026 at 08:40 | Editorial boerse-global.de
Mercedes-Benz is juggling three fronts at once: a legislative threat in Washington, a looming labor confrontation at home, and a share price that has spent the year sliding toward its floor. Each carries its own clock, and none of them is ticking in the Stuttgart automaker's favor.
On Capitol Hill, two senators on Thursday pushed back to next week an attempt to fast-track a permanent ban on Chinese vehicles. According to Reuters, the bill could hit Mercedes-Benz directly. Senator Bernie Moreno made clear, however, that should the measure pass, the company would have until 2030 to adjust and might even secure exemptions. For the premium manufacturer, the stakes on the U.S. market are high, even as it works to keep its ties to the Far East in good repair. As recently as Tuesday, China's Commerce Minister Wang Wentao welcomed expanded investment in China and deeper innovation partnerships between European and Chinese firms during a video call with CEO Ola Källenius.
Cost Cuts Collide With Union Demands
The external uncertainty lands squarely in the middle of a bitter dispute on home turf. Ahead of upcoming wage talks covering 3.7 million workers in Germany's metal and electrical industry, IG Metall on Wednesday called for a 5% pay increase. That demand runs straight into the automaker's austerity plans, with threatened plant closures and a toughened savings drive fueling considerable friction between management and employee representatives.
German media reports point to planned savings of EUR 800 million in German labor costs, with measures such as longer working hours without extra pay and cuts to bonus payments under discussion. Mercedes-Benz has so far declined to comment on those reports. At the same time, the group is pressing ahead with its product lineup, having kicked off series production of the new GLA at its Rastatt plant on September 17, with 48-volt hybrid variants to follow before the end of the year.
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Buses, Software and Buybacks
Manufacturing strategy is shifting elsewhere too. Series production of the Mercedes-Benz Conecto city bus began Thursday at Turkish manufacturer Otokar's Sakarya plant, following an agreement between the two companies last year. Daimler Buses supplies all major components for the model along with dedicated production equipment, and the first customer deliveries are slated for the first half of 2027. Outsourcing steps in the commercial vehicle and bus business form part of a broader effort to make cost structures more flexible and manage capacity with greater precision.
On the technology side, the automaker sealed a binding series agreement on Tuesday with London-based specialist Wayve. Its "AI Driver" system is to become available in Mercedes-Benz vehicles within the next two years, enabling point-to-point driving assistance on highways and in urban environments without relying on high-resolution map data. Mercedes-Benz had already participated in the company's financing round back in February.
To prop up its share price, the group also launched a fresh buyback program on September 1. Through April 6, 2027, Mercedes-Benz intends to repurchase and cancel up to EUR 1 billion worth of its own shares, or a maximum of 58 million securities, on the open market. The immediately preceding EUR 2 billion program wrapped up in June.
A Stock Pinned Near Its 52-Week Low
Despite these operational moves, market sentiment remains subdued. Berenberg cut its price target for the stock from EUR 56 to EUR 52 on September 16, keeping its "Hold" rating. Analyst Romain Gourvil pointed to a lack of positive catalysts and persistent challenges in the Chinese market. Management had already adjusted its annual guidance at the end of July and now expects total revenue for 2026 to come in slightly below the prior-year level.
The pressure shows in the share chart. The stock closed Friday's session at EUR 41.59, leaving it down 31% since the start of the year and hovering just above its 52-week low of EUR 41.05, touched during the same session. Weaker demand in China, a key sales market, is doing much of the damage to hopes for a swift recovery in margins. Investors now turn their attention to Washington next week, where the timeline for the contested bill will be decided.
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