Mercedes-Benz Pairs Wayve Self-Driving Pact With Deep Cuts to German Cost Base
Published on 10/02/2026 at 12:50 | Editorial boerse-global.de
Mercedes-Benz used a single September day to signal where it intends to compete — and what it is prepared to sacrifice to fund the fight. On 22 September the Stuttgart automaker sealed a partnership with UK software house Wayve to fold the partner's autonomous driving system into future models, with Reuters reporting the technology should reach the road within two years.
That forward-looking bet sits alongside a far less comfortable reality. The equity has shed 33% since the start of the year, closing Thursday at EUR 40.18 — barely above the 52-week low of EUR 39.77 touched the previous session. Investors are effectively being asked to weigh a technology story against a cost story, and the market has so far voted with the cost side.
Buyback taps the brakes as BlackRock flags a stake
Capital discipline remains part of the response. Between 21 and 25 September the group repurchased 895,000 of its own shares for roughly EUR 38 million. On the shareholder register, BlackRock disclosed a voting rights share of 6.04% via a threshold notification dated 22 September, underscoring that large institutions are still holding meaningful positions through the drawdown.
Analysts have trimmed targets without abandoning their bullish stance. Deutsche Bank Research's Tim Rokossa argued Tuesday that the reporting season is unlikely to shift the sector narrative, and flagged China as a structural challenge; the bank cut its target to EUR 70 from EUR 73 while keeping a Buy rating. HSBC followed on 24 September, nudging its target to EUR 63 from EUR 65 and explicitly reaffirming its buy case. The shared logic: if the cost reductions land as planned, margins can be defended even on flat volumes.
Should investors sell immediately? Or is it worth buying Mercedes-Benz?
The German cost question: EUR 800 million and a 38-hour week
Where that defence gets difficult is on home turf. Production chief Michael Schiebe told employees that without cost reductions the company may have to shut one German assembly plant and one German powertrain plant. Mercedes-Benz countered that its stated goal remains keeping every German site, without naming facilities or a timeline.
WirtschaftsWoche, citing three people familiar with the matter, reported plans to cut German labour costs by EUR 800 million, with measures under consideration including longer hours without extra pay and adjustments to or elimination of special payments. Reuters noted the company declined to comment on the ongoing talks.
The hours question is the sharpest edge. Management is negotiating a move to a 38-hour week without wage compensation, a step it frames as necessary to keep German sites competitive. IG Metall has rejected any departure from the 35-hour contractual week outright. A prolonged standoff would slow the very efficiency gains the plan depends on, leaving the group carrying an outsized cost load.
Buyouts open in December — but not in the plants
A voluntary severance programme begins in December in Germany, targeted at indirect functions; manufacturing is excluded. Media reports point to a sustained squeeze on purchasing and administrative spending. The design is deliberate — cut overhead without touching the lines that build the cars.
Washington's China test
Across the Atlantic, a legislative threat has been taking shape. A bill already approved in a Senate committee targets Chinese influence in the auto sector, and would bar companies with more than 15% Chinese ownership from selling vehicles in the US market. For Mercedes-Benz the exposure is real: Reuters reports that nearly 20% of its passive holdings trace to Chinese companies. Senator Bernie Moreno addressed the issue Tuesday, saying ongoing talks are meant to ensure the planned law does not shut Mercedes-Benz out of US sales.
What October has to prove
The near-term catalyst is fixed. On 28 October 2026 the Mercedes-Benz Group publishes third-quarter 2026 results, the first hard evidence of how well margins have held up against market pressure. Until then the technical picture offers a simple marker: holding support near the year's low leaves room for a medium-term consolidation, while a further slide in core operating profitability would hand the initiative back to the bears. The bull case rests on cost cuts and buybacks arriving faster than Chinese premium demand erodes.
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