Mercedes-Benz cut its 2026 profit outlook due to China market struggles.
Context
What happened: Mercedes-Benz abandoned its forecast of at least 15% core profit growth for 2026 and now expects profit to stay flat, becoming the third major German carmaker to cut its full-year outlook.
Key numbers: 2026 core profit seen at around €5.8 billion, flat versus prior 15% growth forecast. Core car business margin cut to 2% to 3% from 3% to 5%.
Why it matters: The cut points to a structural crisis in Germany's auto industry, with weak demand and competition from Chinese rivals such as BYD and Xiaomi weighing on profits. BMW and Volkswagen have already lowered their own forecasts.
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Oct 28, 2026 09:35 AM ET