Mercedes-Benz Names Porsche Veteran to Steer Luxury Push as Shares Sink and Cost Pressures Mount
Published on 07/01/2026 at 17:25 | Redaktion boerse-global.de
Mercedes-Benz has tapped a former Porsche executive to lead its high-margin performance and ultra-luxury brands, even as the carmaker wrestles with a plunging share price, strained workforce relations and a looming multi-billion-pound legal bill in the UK.
Stefan Weckbach, previously responsible for product strategy at Porsche and Volkswagen, takes over today as head of Mercedes-AMG, the Maybach ultra-luxury line and the G-Class off-roader. He replaces Michael Schiebe, who will move to the group’s management board at the end of 2025. The move signals a renewed push to lift the contribution of top-end models, which currently account for less than 15% of total vehicle sales. Mercedes plans to roll out dozens of new vehicles by 2027, and Weckbach’s task is to turn that pipeline into sustained profit growth.
The new boss steps into a business under severe strain. Mercedes-Benz’s car division posted an operating profit of just €933 million in the first quarter, with an adjusted return on sales of a meagre 4.1%, hit by brutal price competition in China and weakening demand. The stock has shed nearly 29% since the start of the year, closing at €43.83 on Tuesday — barely above a 52-week low of €42.64 hit on Monday. The 200-day moving average sits at €54.95, some 20% above the current price, and the relative strength index has slipped to 33.1, approaching oversold territory.
The market’s tepid response to the management change reflects the depth of the challenges. On Wednesday, the shares barely budged at €43.85, hovering just above the recent trough with no clear catalyst in sight.
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Behind the scenes, the situation is described inside the company as “dramatic.” Chief executive Ola Källenius and HR board member Britta Seeger have informed roughly 90,000 German employees that a contractual special payment — a so-called transformation component worth 18.4% of a monthly salary — will be delayed from July 2026 to 2027. Management is also demanding a return to the 40-hour work week without additional compensation, a proposal that has drawn fierce criticism from the works council. In North America, 72 research and development positions are being cut, effective 6 July 2026.
Adding to the financial pressure, the UK Court of Appeal opened the door on 30 June 2026 to mass lawsuits over car finance arrangements, a ruling that exposes Mercedes-Benz Financial Services to potentially hefty claims. The Financial Conduct Authority estimates the total industry cost at around ÂŁ9.1 billion, including roughly ÂŁ7.5 billion in consumer redress and the remainder in administrative expenses. How much of that burden will fall on Mercedes remains unclear, but the timing could hardly be worse.
The company’s drive for discipline extends to investment decisions. Mercedes recently declined to acquire a 24% stake in the Alpine F1 team, baulking at a valuation of roughly $3 billion that it considered too rich.
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With the stock mired near its low and the next quarterly report due, investors will be watching whether the combination of a new luxury chief and a stringent cost-cutting programme can halt the slide. The patience of the workforce and the works council, however, appears to be wearing thin.
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