Mercedes-Benz to Accelerate Efficiency Drive as Market Conditions Worsen
By Dominic Chopping
Mercedes-Benz said Wednesday that it would push ahead with plans to become more efficient as market conditions have continued to deteriorate.
The German luxury-car maker on Tuesday cut its expectations for the year, warning of a worsening market in China and higher costs in the fourth quarter, including for raw materials.
It now expects an adjusted return on sales this year of 2% to 3% in its cars unit, while earnings before interest and tax are expected to land at the prior-year level of 5.82 billion euros ($6.47 billion).
"Market conditions have become even more challenging over the course of the year, particularly in China," Chief Executive Officer Ola Kallenius said Wednesday.
"With more product launches ahead and AI changing the way we work, we are focused on building a faster, more efficient and even more competitive Mercedes-Benz."
Western automakers are contending with intense competition in China, which has seen many manufacturers engage in a prolonged price war to entice customers.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
October 28, 2026 02:51 ET (06:51 GMT)
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