German automaker Mercedes has revised its 2026 profit forecast downward, attributing the adjustment to declining sales in China and increased material expenses. The move follows similar downward revisions by Volkswagen Group and BMW, signaling broader challenges in the industry. Analysts are now scrutinizing the company’s premium-market strategy under its current leadership. The latest financial caution comes as automakers grapple with shifting demand and rising production costs.
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.
