Mercedes-Benz Reopens Buyout Window as Office Mandate and China Woes Weigh on the Stock

Mercedes-Benz reopens voluntary severance for German staff, plans up to four office days from 2027, as Deutsche Bank cuts its price target to EUR 70.

Mercedes-Benz is reopening a voluntary severance program for its German workforce, a move that lands alongside plans to pull back on remote work and a fresh downgrade of the stock's price target. The buyout offer, expected to launch in December, targets employees covered by collective agreements and, in part, managerial staff. Exits under the program are not imposed unilaterally — both the company and the individual must sign off, a "double voluntariness" principle that has shaped previous rounds. According to media reports, roughly 5,500 employees have already left the group through this route.

The personnel measures come as management pushes for meaningful efficiency gains against a deteriorating market backdrop. Production chief Michael Schiebe has even floated closing domestic plants if savings fail to materialize. On the table are holiday and Christmas bonuses as well as working-time arrangements in manufacturing, where the company is weighing an increase from 35 to 38 hours per week without additional pay. Mercedes-Benz builds at foreign sites at significantly lower hourly rates, which intensifies the pressure on its German operations. Labor representatives are resisting such cuts, while executives point to competitive disadvantages and aim to leave positions unfilled through natural attrition.

Office Rules Set to Tighten From 2027

Parallel to the staffing overhaul, the automaker is steering toward more on-site presence. The existing group works agreement on mobile working has been terminated, and full-time employees could face a standard of up to four office days per week. The new arrangement is not yet final — the works council bodies must approve it before it can take effect, provisionally on January 1, 2027. Individual exceptions would remain possible. CEO Ola Källenius had internally favored a complete return to the desk but could not push it through. For managers, a five-day attendance requirement has already applied since the start of 2025.

Deutsche Bank Flags China as the Core Problem

The cost and efficiency drive is unfolding in a persistently difficult industry climate. Deutsche Bank Research adjusted its view on the shares, with analyst Tim Rokossa trimming the price target to EUR 70 from EUR 73 while keeping a "Buy" rating. Rokossa identified China as the biggest construction site for the Stuttgart-based manufacturer, arguing that the slowdown there is not merely a temporary cyclical dip but a deep-seated structural problem for established premium carmakers.

Shares Rebound After Touching a 52-Week Low

The market offered a modest reprieve. The stock climbed 1.4% to EUR 41.23 in today's trading, one day after hitting a 52-week low of EUR 40.14. The prior session had closed at EUR 40.53. Since the start of the year, the shares have lost 33% of their value.

Attention now turns to next month. Mercedes-Benz will publish its financial figures for the third quarter of 2026 on October 28, offering detailed insight into the group's operating condition. Whether the measures already set in motion can sustainably support profitability should become clearer with the upcoming interim reports. The second quarter of 2026 had brought an operating brightening with rising profits, yet the overall situation remains challenging after a noticeably weaker earnings performance in the past fiscal year.