Mercedes-Benz Shares Tumble to Fresh Low as Management Delays Bonus, Seeks Longer Hours

Mercedes-Benz shares fall to 52-week low as profits crash, cost cuts spark labor unrest, and investors await half-year results for signs of recovery.

The Stuttgart-based automaker is facing a perfect storm of falling profits, labor friction, and investor skepticism that pushed its stock to a fresh 52-week low on Friday. Mercedes-Benz shares slid more than 2% to €43.53, bringing the year-to-date decline to nearly a third as the company struggles to convince markets that its cost-cutting efforts will be enough.

Profit Dive Sparks Emergency Measures

The first quarter delivered a brutal wake-up call: group earnings collapsed by 17.2%, following a year in which net profit was already halved to €5.3 billion. The passenger car margin shrank to a razor-thin 4.1%. Management blamed the weakness on China's aggressive price war, unfavorable currency movements, and fresh tariffs that have squeezed the premium brand's margins.

In response, the board has unveiled an accelerated savings plan targeting €5 billion in annual cost reductions. Thousands of employees have already left the company voluntarily, while production capacity is steadily shifting to lower-cost plants in Poland and Hungary.

Labor Unrest Deepens

The cost-cutting drive has now moved squarely onto the factory floor. A long-promised special payment — the "transformation component" negotiated under the collective agreement — was originally due in July 2026. Management has unilaterally postponed it to April 2027, hitting the wallets of some 90,000 workers. The bonus is equivalent to roughly one-fifth of a monthly salary.

At the same time, the board is demanding a return to the 40-hour week for many employees who currently work 35 hours under existing agreements. Chairman of the supervisory board, Martin Brudermüller, has publicly backed the move. The works council has rejected the delayed bonus outright and referred all questions on working hours to the IG Metall union.

Technicals Flash Red

The stock's slide has pushed it well into bearish territory. Mercedes-Benz shares now trade nearly 20% below their 200-day moving average, a classic signal of sustained downward momentum. An overbought RSI indicator flagged by technical analysts confirms the bearish trend, with chart support at €44 having already given way.

Bernstein Research analyst Eunice Lee maintains a "Market-Perform" rating but continues to flag risks from supply chain disruptions and the sluggish pace of electric vehicle adoption. The market is now holding its breath for the detailed half-year results due in July — the first real test of whether the deep cost cuts are beginning to take effect.

July Report Will Be Decisive

With the stock sitting at its lowest point in 52 weeks and morale inside the company deteriorating, the pressure on management is immense. The upcoming half-year figures must show tangible progress on margins and cash flow. If they don't, the conflict with labor over hours and bonuses may escalate further — and the share price could have further to fall.