Mercedes-Benz Walks a Tightrope Between Washington, Works Councils and a Bruised Share Price

Mercedes-Benz faces a stalled share price, widening restructuring and a US bill targeting 15% Chinese ownership ahead of Q3 results on 28 October.

Mercedes-Benz is heading into its third-quarter reporting season carrying a familiar trio of burdens: a stalled share price, a restructuring programme that keeps widening in scope, and a legislative threat in Washington that could complicate its access to one of its most important markets.

The Stuttgart carmaker's stock closed Friday at EUR 39.90, hovering just above its 52-week low of EUR 39.70. Since buybacks resumed a little over a week ago, the equity has shed 3.8%, and the year-to-date decline now stands at 34%. Neither the capital returns nor the cost-cutting drive has managed to put a floor under the price.

A Bill in Washington With a 15% Threshold

At the centre of the political noise is a draft US law targeting vehicle manufacturers with Far Eastern ownership links. According to a Reuters report, the proposal would impose restrictions on companies in which Chinese groups hold more than 15%. For Mercedes-Benz, passive Chinese holdings are reported to sit at just under 20% — enough to put the company squarely in scope.

US Senator Bernie Moreno said on Tuesday that talks were ongoing, with the stated aim of ensuring that any such legislation does not shut Mercedes-Benz out of the American market. The uncertainty lands at an awkward moment, as management presses ahead with deep operational changes at home.

Factory Closures on the Table, Exit Packages on the Way

Production chief Michael Schiebe warned back in September at a works meeting in Sindelfingen that without a viable savings agreement, the closure of one German assembly plant and one German powertrain plant could become unavoidable. The board's declared goal, however, remains keeping every German site in operation.

Running alongside those talks is a voluntary severance scheme for administrative staff, which the company has confirmed will be relaunched in December. For the first time, senior executives will be eligible to take part. Mercedes-Benz has not disclosed a target headcount for the reductions.

A parallel negotiation is under way over a new works agreement that would, according to media reports, allow managers to require staff to be on site for up to four days a week — making four office days the new operational norm.

Buybacks, BlackRock and a Lower Price Target

Mercedes-Benz continues to deploy its own capital in the market. Between 21 and 25 September, the group repurchased 895,000 of its own shares, extending a programme that had already been running. On the shareholder register, BlackRock reported on 25 September that its voting rights had risen to 5.87%, with a further 0.17% held through financial instruments — a total position of 6.04%.

Analysts, meanwhile, are trimming expectations even as they stay constructive. Deutsche Bank Research cut its price target for Mercedes-Benz from EUR 73 to EUR 70 on 29 September, while keeping its "Buy" rating intact.

FUCHS Deal Extended as October 28 Looms

On the operational front, the group signalled continuity on Thursday by extending its strategic partnership with lubricant maker FUCHS SE. The cooperation covers lubricant solutions across the Stuttgart company's global after-sales network.

Investors will get their next hard read on the summer's financial performance on 28 October 2026, when Mercedes-Benz Group AG publishes its interim report for the third quarter of 2026 and hosts a conference call the same day to walk through the results.