Mercedes-Benz Buys Back 895,000 Shares as Plant Closure Threats and a 31% Slide Test Investor Nerves
Published on 09/29/2026 at 04:40 | Editorial boerse-global.de
Mercedes-Benz spent the final full week of September quietly accumulating its own stock while simultaneously turning up the heat on its German workforce. The Stuttgart automaker repurchased 895,000 treasury shares between September 21 and 25 through its ongoing buyback program, lifting the cumulative volume since the start of the month to just under three million shares.
The timing is striking. Management is buying into weakness — the equity has surrendered 31% of its value since January, and on the prior trading day it closed at EUR 41.60, a modest 0.3% gain that leaves it hovering barely above the 52-week low of EUR 41.05 touched only recently. Another reading of the stock put it at EUR 41.47, underscoring how tightly the shares are pinned near their floor.
A Cost Battle That Could Claim Two Plants
Behind the capital returns sits an increasingly bitter dispute over the future of Mercedes-Benz's domestic manufacturing footprint. Production chief Michael Schiebe told a works meeting in Sindelfingen that two German plants — an assembly facility and a powertrain site — could be shut down if the targeted cost reductions fail to materialize. The warning, first reported by SWR, was reinforced by the board at a separate works gathering the following day, where executives reiterated demands that employees work longer hours for the same pay.
The company's so-called "productivity offensive for Germany" includes extending the working week from 35 to 38 or 40 hours without wage compensation. According to WirtschaftsWoche, which cited people familiar with the matter, Mercedes-Benz is targeting savings of as much as EUR 800 million on domestic labor costs, with longer weekly hours and cuts to bonus payments both on the table. The automaker has not confirmed that figure and points to ongoing negotiations with employee representatives.
Labor has dug in. IG Metall and the works council have flatly rejected unpaid additional hours. Roughly 20,000 employees joined a day of action in Sindelfingen on September 21, part of nationwide protests that drew some 175,000 people. With formal talks not due to begin until October 7, the two sides are already entrenched.
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China's Drag and a Van Unit Carrying the Load
The austerity push is rooted in tangible pressure on the income statement. In the second quarter of 2026, Mercedes-Benz generated revenue of EUR 32.06 billion and EBIT of EUR 1.55 billion. The adjusted margin at Mercedes-Benz Cars came in at just 4.0%.
The biggest single drag is China, the group's most important individual market, where passenger car deliveries collapsed 30% in the second quarter. The company booked a EUR 704 million impairment on its joint venture there. Partially offsetting the damage was the vans division, which posted an adjusted return on sales of 10.2%.
At the same time, Mercedes-Benz is reshaping its overseas capacity. The Hungarian plant in Kecskemét has been expanded to enlarge production space ahead of the series launch of new models.
Analysts Split on What Comes Next
Opinions on the capital markets are far from uniform. Bernstein left its rating at "Market-Perform" with a price target of EUR 56 — first on September 9 and reaffirmed on September 23. Analyst Stephen Reitman argued that European manufacturers such as Mercedes-Benz are holding their ground against Chinese brands more effectively than investors currently give them credit for.
UBS struck a more cautious tone. Analyst Patrick Hummel maintained a "Neutral" stance, cautioning that hitting full-year targets depends heavily on a strong fourth quarter of 2026.
Investors will get their next hard data points soon. A pre-close call on October 8 offers early orientation on the interim figures, ahead of the full third-quarter report on October 28. Whether the automaker can push through its home-market savings without a protracted labor conflict is likely to be settled in the October bargaining rounds.
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