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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
As competition intensifies and production costs rise in the global auto industry, Mercedes Benz has announced it is asking employees to work longer hours for the same salary as part of cost-cutting measures. According to Reuters reports, the company aims to reduce operational expenses through this new policy.
The move comes amid weak German economic activity, with the services PMI falling to 46.8 in June 2026, per market data. EU new car sales grew 3.2% year-on-year in May, down from 5.1% previously, indicating slowing demand. The cost-cutting step may reflect broader sector efforts to brace for a slower period.
In trading, MBGAF shares closed at $50.88 on June 25, 2026, within a range of $50.58-$51.60. Investors are watching for developments in management's talks with unions over this policy, as well as any further cost-cutting announcements. Markets will also focus on upcoming German economic data to gauge the impact on the company's performance.
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