Mercedes-Benz Offloads European Charging Network to Electra as Labour Talks and a Jefferies Downgrade Weigh on the Stock

Mercedes-Benz has found a buyer for its European fast-charging infrastructure, agreeing on 3 November to hand the network to Electra. The deal covers 47 charging parks and 374 charge points in total, among them 31 sites in Germany and six in Austria.

The two companies are also widening an existing fast-charging partnership. Mercedes-Benz drivers will gain access to more than 800 Electra stations and over 5,000 charge points across ten European countries, while Electra will fold every acquired Mercedes-Benz fast-charging park into its own network.

Jefferies Steps Back

The transaction lands against a tougher backdrop on the equity side. Jefferies analyst Philippe Houchois cut Mercedes-Benz from "Buy" to "Hold" on Tuesday and trimmed his price target to 44 euros from 46. The stock closed Friday at €40.67, up 0.3%, leaving it below the revised target.

Houchois tied the downgrade to the need for a far-reaching overhaul of the business model. He also pointed to a weaker liquidity profile and a lack of clarity over whether the share buyback will be renewed.

Aluminium Sourcing Tied to Climate Criteria

On the supply side, Mercedes-Benz is pressing ahead with efforts to decarbonise its procurement. The company aims to cover at least 10% of its primary aluminium needs through purchases that meet the climate criteria of the First Movers Coalition, whose aluminium arm it has now joined.

The carbon footprint of the aluminium it sources is meant to fall to 3.5 kilograms of CO? equivalent per kilogram by 2028, and to 3.0 kilograms by 2030.

Cost Talks at an Impasse

Those supply-chain commitments sit alongside a far more fraught negotiation at home. Talks over lower labour costs have stalled, with the Handelsblatt reporting that management is demanding unpaid overtime, among other measures. IG Metall and the works council, for their part, are insisting on binding solutions for the German sites.

Mercedes-Benz said on Thursday, according to Reuters, that it would have to examine possible plant closures more concretely. The company cited deadlocked discussions on labour costs and the absence of agreement with the works council and the union as the trigger.

Chief executive Ola Källenius defended the savings drive in an interview with the "Neue Osnabrücker Zeitung" on Thursday, listing energy, production and labour costs as well as regulatory burdens as competitive factors. Where future products and investments are placed could, he said, depend on costs at the respective sites.

Works council and IG Metall rejected plant closures outright on Friday, with the Handelsblatt reporting that employee representatives pledged to fight for the survival of the German locations.