Mercedes-Benz Halts German Investment as Cost Talks Stall and Jefferies Steps Aside
Published on 11/13/2026 at 03:40 | Editorial boerse-global.de
Mercedes-Benz has pressed pause on further spending at its German sites, a board-level decision that followed deadlocked negotiations over cost reductions, according to dpa. The move sharpens a question the company had until now left open: which of its domestic plants can it actually afford to keep running?
Personnel chief Britta Seeger did not soften the message. Mercedes-Benz, she indicated, must now examine in concrete terms which German locations remain viable, with plant closures moving closer to the realm of real consideration rather than distant contingency.
Investors registered the shift. The stock shed 2.5% yesterday to close at €40.55, and by today it was down another 2.3%.
Margin Guidance Cut as China Weighs
The plant review lands alongside a downgrade in the company's own expectations. Two weeks ago, Mercedes-Benz trimmed its forecast for the adjusted return on sales in its passenger-car division for 2026 to 2–3%, down from the 3–5% it had previously guided. Management pointed to tougher conditions in China and higher costs in the final quarter of the year.
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S&P Global Ratings had already moved on 6 November, cutting both its long-term and short-term issuer ratings on Mercedes-Benz and its rated subsidiaries from "A/A-1" to "A-/A-2." The outlook is negative. The agency cited a market-driven sales decline in China, mounting competition in that country's premium segment, tariffs, and persistent cost inflation.
Jefferies Joins the Retreat
Equity analysts are recalibrating too. Jefferies downgraded the stock from "Buy" to "Hold" on Tuesday and trimmed its price target to €44 from €46. Analyst Philippe Houchois framed the call around the scale of renewal the business model requires and the company's liquidity profile.
Buybacks, Aluminium and a 2039 Climate Target
Against that gloomier backdrop, Mercedes-Benz continues to buy its own stock. Between 2 and 6 November inclusive, the group repurchased roughly 567,000 shares under its buyback programme.
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On the supply side, the carmaker announced Tuesday a long-term offtake agreement with Hydro for CO?-reduced aluminium, tying the deal to its push to decarbonise procurement. The same day, it laid out a CO? reduction pathway: production emissions are to fall 90% by 2039 compared with 2019, while the use phase is targeted for an 80% cut, provided market conditions allow. Across the relevant value-chain stages combined, the company aims for a 70% reduction.
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Mercedes-Benz Stock: New Analysis - 13 November
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