Mercedes-Benz Progressing with Restructuring Measures
Dow Jones
Oct 08
0849 GMT - Mercedes-Benz is making strong progress to outline the necessary restructuring measures for 2026 and 2027, in J.P. Morgan's view. The bank expects these measures to be defined by the end of 2026, setting the earnings base and strategic direction for the company to stabilize earnings in 2027. A key earnings driver in China will be the work Mercedes is doing to cut material costs in order to improve profitability of the recent launches in the region, particularly in the light of the competitive pricing environment, it adds. "Strategically, in our view, the firm will continue to address earnings momentum year by year, focusing on the short term and free cash flow generation, which will ultimately dictate shareholder return." Shares fall 0.9%.
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