Mercedes-Benz shares touched a fresh 52-week low of €46.30 on Wednesday, just two weeks after the carmaker completed a €2bn share buyback programme that conspicuously failed to stem the rout. The stock has since edged back to around €47.32, but remains deep in the red with a year-to-date loss of 23.24%. The buyback, which saw the group repurchase 37.6 million shares at an average price of €53.19, has done little to convince the market that management can arrest the decline.
The very same week the stock was plumbing new lows, Mercedes-Benz fired up production of an entirely new electric van platform at its Vitoria plant in Spain. The first model based on the VAN.EA architecture rolled off the line on Monday, marking the start of a renewed push into high‑margin commercial vehicles. Production chief Michael Schiebe has overhauled the Spanish facility over the past two years, embedding artificial intelligence and flexible manufacturing to drive down costs while preserving the brand’s premium credentials.
Parallel to the van launch, the group’s high‑performance AMG division is accelerating its model offensive. Between now and 2028, AMG plans to introduce 27 new variants, including its first standalone electric vehicle on the dedicated AMG.EA platform. Mercedes is leaning heavily on the luxury segment to defend profitability as the broader market softens. However, not everything is running smoothly: the combustion‑engined G 500 is currently unorderable due to an engine update, leaving customers to choose from stock or the full‑electric G 580 EQ.
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First‑quarter numbers underscore the challenge. Mercedes generated revenue of €31.6bn and EBIT of €1.9bn, with industrial free cash flow of €1.86bn. Yet the core car division’s adjusted return on sales slipped to just 4.1%, as deliveries of 419,400 vehicles were held back by declining sales in China. Growth in Europe and the US only partially compensated.
One bright spot is electrification. Battery‑electric vehicle sales in Europe jumped 34% year‑on‑year, with Germany posting a 36% gain. Electrified models accounted for 41% of European sales, while orders for pure‑electric cars doubled compared with the prior year. Mercedes has announced more than 40 new models across all segments between 2025 and 2027, and the market is waiting to see whether that wave will lift margins.
Technically, the stock remains under pressure. It trades 6.0% below its 50‑day moving average and 14.4% below the 200‑day line. The relative strength index of 38.3 indicates weakness, though it has not yet flashed a clear reversal signal. Analysts see a dividend of roughly €3.40 for the current year, but real clarity on profitability is unlikely before the second‑quarter results on 28 July. Until then, Mercedes will have to prove that its factory floor innovations and luxury‑brand firepower can translate into higher returns – and a higher share price.
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