Mercedes-Benz reported a 26% drop in profits due to the automotive industry crisis

German automaker Mercedes-Benz reported a significant decline in its financial performance in the second quarter of 2026. The company’s profit fell by 26% compared to the same period last year, and vehicle sales dropped by nearly 7%.

The sharp drop in demand in China, where sales fell by 30%, had the greatest impact on the company’s results. Growth in vehicle sales in Europe and the U.S. was unable to offset these losses.

In light of the weak results, Mercedes-Benz has revised its forecast for 2026. The company expects total sales volume and revenue to be lower than last year. In the second quarter, the group’s revenue totaled approximately 32 billion euros, of which nearly 23 billion euros came from the automotive business.

To cut costs, the automaker is continuing its optimization program. In particular, the company has postponed the payment of special bonuses to employees, and management has also proposed revising compensation terms, calling for longer working hours without a pay raise. This initiative has sparked discontent among employees.

Source: Bild.

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