Mercedes has revised its 2026 profit forecast downward, attributing the adjustment to declining sales in China and rising material expenses. The move follows similar downward revisions by Volkswagen Group and BMW, signaling broader challenges in the automotive sector. Analysts are now scrutinizing the company’s premium-market strategy under its current leadership. The announcement adds to concerns about the industry’s ability to sustain profitability amid shifting demand and cost pressures.
Mercedes lowered its 2026 profit outlook, citing weaker China sales and higher material costs, following VW Group and BMW and raising questions about CEO Ola Kallenius' high-end strategy.
