Mercedes-Benz Strikes Wayve Self-Driving Deal While Slashing Models and Reopening Buyouts

Mercedes-Benz plans December 2026 voluntary layoffs, trims 2027 EV lineup and signs a Wayve self-driving deal as profit halves and China sales fall.

Mercedes-Benz is pressing ahead on two fronts at once: signing a fresh autonomous-driving alliance while simultaneously thinning its model range and preparing another round of voluntary redundancies. The twin moves land as the Stuttgart carmaker's shares hover just above multi-year lows, leaving investors to weigh whether cost discipline and tech partnerships can offset a deepening sales slump in China.

The company confirmed a cooperation agreement with UK software firm Wayve on 22 September, aimed at integrating the partner's autonomous driving system into future Mercedes models. According to Reuters, the system is slated to debut within the next two years. The tie-up signals the group's determination to keep pace in automated driving technology even as it contends with weakness in its legacy business.

Buyout Program Returns, This Time Reaching Management

Management plans to relaunch a voluntary severance scheme in December 2026, targeting staff in administration, finance and development. For the first time, executives will be eligible to participate. The approach echoes an earlier program that saw roughly 5,500 employees leave the company between April 2025 and March 2026.

Extending the offer to leadership ranks promises extra leverage on personnel costs. No specific headcount target has been disclosed, and the program depends on mutual agreement between employer and employee — a structure that leaves the ultimate savings uncertain.

The model lineup is being trimmed in parallel. For the 2027 model year, Mercedes will drop battery-electric offerings including the EQE sedan and the performance-oriented AMG EQE, along with range-topping variants such as the AMG S63 E Performance and the Mercedes-Maybach EQS680 luxury SUV. Volume and price leaders like the EQS sedan and EQS SUV remain in the catalog, concentrating resources on higher-margin segments.

Earnings Halved as China Demand Craters

The restructuring unfolds against a stark deterioration in profitability. Mercedes posted a profit of EUR 5.3 billion for fiscal 2025, down from EUR 10.4 billion a year earlier — a near halving in twelve months. The first quarter of 2026 brought no relief, with earnings falling another 17.2 percent.

China is the chief culprit. Passenger car deliveries there collapsed 30 percent in the second quarter of 2026, while global sales slipped 6 percent to 511,900 vehicles over the same period. Cost reductions now have to absorb that shortfall.

Plant Closures and an EUR 800 Million Labor Target

Production chief Michael Schiebe told employees that without cost cuts, the company might have to shut one German assembly plant and one German powertrain facility. Mercedes countered that its stated goal remains keeping all German sites, though it named no specific plants or timeline.

Labor costs in Germany are already the subject of fraught negotiations. WirtschaftsWoche, citing three people familiar with the matter, reported plans to cut German labor costs by EUR 800 million. Measures under consideration include longer working hours without extra pay, plus adjustments to or elimination of special payments. Mercedes declined to comment on the ongoing talks, according to Reuters.

Washington Bill Puts Passive Holdings in the Spotlight

Attention is also fixed on the US, where a draft law cleared a Senate committee targeting Chinese influence in the auto sector. The proposal would bar carmakers with more than 15 percent ownership by Chinese companies from selling vehicles on the American market. The issue matters for Mercedes because nearly 20 percent of its passive stakes are held by Chinese firms, per Reuters. Senator Bernie Moreno said on Tuesday that ongoing discussions should ensure the planned legislation does not shut Mercedes out of US sales.

Chart Levels and the December Catalyst

On the technical front, the stock closed Thursday at EUR 40.18, having touched a 52-week low of EUR 39.77 the previous day. In pre-market trading the shares changed hands at EUR 40.20, roughly 1.1 percent above that trough. Year-to-date, the equity is down 33 percent.

For positioning, the markers are clear. As long as support at EUR 39.77 holds, a base-building phase remains possible. A sustained daily close below that level would risk accelerating the broader downtrend. The next concrete catalyst is the December 2026 launch of the severance program, when take-up rates and the near-term cost of payouts will become visible. Until then, sales signals from Asia and the progress of the portfolio overhaul are likely to set the tone.