Mercedes-Benz Leans on Buybacks and Buyouts as Citi Trims Its Target
Published on 10/08/2026 at 07:02 | Editorial boerse-global.de
Mercedes-Benz is marshalling its own balance sheet to ride out a rough patch. The Stuttgart automaker is pairing an ongoing share repurchase program with fresh cost discipline at home, a two-pronged approach aimed at shoring up investor value while the broader market sours on European carmakers.
The stock closed yesterday at EUR 39.90, down 1.6 percent on the day. That leaves the shares nursing a 34 percent loss since the start of the year.
Citi Cuts Its Price Target
Sentiment on the equity took another knock from the analyst community. Citi lowered its price target on Mercedes-Benz while keeping its rating at "Neutral." The US bank pointed to mounting earnings pressure bearing down on European automakers through the second half of 2026.
Buyback Program Grinds On
Against that grim backdrop, the company continues to shrink its share count. Mercedes-Benz Group disclosed on Monday that it repurchased 875,000 of its own shares on the open market between September 28 and October 2. Over the longer stretch running from September 1 through October 2, the buyback totaled 3,851,805 shares.
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Fewer shares in free float mechanically lifts earnings per share, and management is counting on the program to put a floor under the stock while the sector confronts deep-seated challenges and investors grow more skeptical about profitability.
Voluntary Severance Push Targets Overhead
Cost-cutting is running in parallel with the capital markets activity. According to media reports, Mercedes-Benz relaunched a voluntary severance program on September 30 for employees in indirect functions in Germany. Production roles are unaffected, the report said. The program is expected to launch in December and is designed to trim administrative expenses substantially without resorting to compulsory redundancies.
The company is also reinforcing existing alliances. On October 1, Mercedes-Benz and FUCHS SE extended their partnership for lubricant solutions across the global after-sales service network.
China's 31 Percent Slide Weighs on Deliveries
Those efficiency efforts are colliding with a demanding operating environment. In the third quarter of 2026, Mercedes-Benz Cars sold 407,200 passenger vehicles worldwide, an 8 percent decline from the same period a year earlier. Deliveries in China, the company's key market, fell 31 percent, with 86,800 passenger cars handed over there.
Group-wide, passenger car and van deliveries slipped 6 percent to 491,700 units in the quarter.
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Battery-electric vehicles provided the one clear bright spot. Global sales of fully electric models jumped 52 percent to 78,100 units, with group-wide BEV deliveries up by more than half. The electric surge cushions some of the damage in the combustion-engine business but does not offset the decline in the traditional core. Competition in Asia remains fierce, squeezing margins for established manufacturers.
Smaller markets offered some relief. In India, Mercedes-Benz booked a 6 percent sales gain in the third quarter, delivering 5,422 vehicles.
For management, the task now is to underwrite the transformation with tight cost control — using buybacks, buyouts and a firm grip on overhead to buy room to maneuver.
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