Mercedes-Benz Stock Edges Higher, but GLC Delays and Strike Threats Cloud the Outlook

Mercedes stock edges up 2.1% but faces electric GLC production bottlenecks, union protests over cost cuts, and thin margins. New models and F1 deal fail to lift sentiment.

Mercedes-Benz shares ticked up 2.10% on Thursday to EUR 44.87, offering a thin veneer of relief on a stock battered by a 27% year-to-date decline. But behind the modest gain, the Stuttgart automaker is grappling with a production impasse on its flagship electric GLC and a brewing labor revolt over cost cuts — a combination that threatens to keep the share price under pressure.

Battery and wiring bottlenecks stall the electric GLC

The assembly line for the electric GLC at the Bremen plant has hit a wall. Mercedes sold just around 3,300 units of the model in Europe through May 2026, a paltry showing against the 15,500 BMW iX3 newly registered over the same period. Customers are now waiting months for delivery.

Two weak links in the supply chain are to blame. The CATL partner factory in Debrecen, Hungary, is struggling with environmental certification, forcing Mercedes to import battery cells by ship from China — a six-week detour. Meanwhile, Kromberg & Schubert, a key wiring supplier, has seen its Moroccan plants severely damaged by flooding. Management has promised to clear the backlog by year-end.

Workers push back as cost drive intensifies

Alongside the production snarl-ups, the board is ramping up a cost-cutting offensive. Mercedes aims to slash manufacturing expenses by 10% by 2027, and as part of that plan it will shift production of the upcoming small G-Class from Rastatt to Kecskemét, Hungary.

The workforce is pushing back hard. The IG Metall union has called for nationwide protests on Friday, with rallies planned in Sindelfingen, Untertürkheim and Bremen. The trigger: Mercedes is postponing a tariff-related special payment for nearly 90,000 employees until next year.

Financials: margins at the low end, new models on the horizon

The operational headwinds are reflected in the numbers. In the first quarter of 2026, Mercedes posted revenue of EUR 31.6 billion and an operating result of EUR 1.9 billion. The critical Pkw (passenger car) division delivered a margin of 4.1%, barely scraping the lower boundary of the full-year forecast.

To lift profitability, the company is rolling out more than 40 new models by 2027, including the electric van VLE. But the market is demanding proof. If the next quarterly report on July 28 fails to show a measurable improvement in the car segment’s margin, analysts warn the stock could slide below its recent low of EUR 42.64.

F1 tech deal adds sparkle, not substance

A new partnership with developer Vercel for the Mercedes-AMG Petronas Formula 1 team — aimed at speeding up digital fan experiences and debuting branding at the British Grand Prix — generated headlines but did little to shift investor sentiment. The alliance involves no capital injection, and with over 1,000 employees at the team’s two UK sites still focused on powertrains and chassis, the core business remains squarely on cars.

For now, the stock sits more than 18% below its 200-day moving average, trapped in a clear downtrend. Market attention is fixed squarely on the second-quarter results, where Mercedes must show it can turn the production logjam and margin squeeze around — or risk a fresh leg lower.