Mercedes-Benz now expects flat 2026 core profit of about €5.8 billion instead of at least 15% growth, citing weak demand in China and higher material costs, Euronews reports.
Mercedes-Benz lowered its full-year outlook on Tuesday 27 October, becoming the third major German carmaker to do so, Euronews reports. The company now expects core profit for 2026 to stay flat at around €5.8 billion, having previously forecast an increase of at least 15%. It also cut its expected margin for the core car business to between 2% and 3%, down from an earlier range of 3% to 5%. The group cited difficult market conditions in China and rising material costs.
Preliminary figures for the third quarter showed core profit of €1.77 billion and a 2.5% margin in the car division, with full results due on Wednesday. Mercedes-Benz shares fell by more than 4% after the announcement, while Volkswagen and BMW each slipped around 2%. According to Euronews, vehicle deliveries in China dropped a further 29% in the first nine months of 2026, after reaching their lowest level since 2016 last year.
The report says BMW and Volkswagen had already reduced their own forecasts amid weak demand and fierce competition from Chinese rivals such as BYD and Xiaomi. Mercedes-Benz chief executive Ola Källenius has urged German employees to work extra hours without additional pay while the company expands production in Hungary, where he says costs are about 70% lower than in Germany. Volkswagen, meanwhile, plans to cut 120,000 jobs worldwide by the end of the decade. The figures come from company statements as relayed by Euronews and were not independently confirmed here; full third-quarter results should give a fuller picture.
