Mercedes-Benz cars Q3 adjusted profit halves as China slump bites

What happened: Mercedes-Benz said adjusted operating profit at its cars unit halved in the third quarter as China sales slumped, a day after it cut full-year profit targets. Key numbers: Cars adjusted EBIT fell to €560 million from €1.14 billion. Cars margin was 2.5% versus 4.8%. Cars sales fell 8% to 407,232 vehicles. Why it matters: The cars unit now expects a 2% to 3% adjusted margin for 2026, down from 3% to 5%, citing a tougher China market and higher fourth-quarter costs. The company will reopen a voluntary severance programme for German office staff from December.

Mercedes-Benz said adjusted operating profit at its cars unit halved in the third quarter as China sales slumped, a day after it cut full-year profit targets.

The cars unit now expects a 2% to 3% adjusted margin for 2026, down from 3% to 5%, citing a tougher China market and higher fourth-quarter costs. The company will reopen a voluntary severance programme for German office staff from December.