Mercedes-Benz reopens voluntary severance programme in Germany

Since June, Mercedes-Benz has intensified its global productivity measures, with a particular focus on its German sites, according to the group’s quarterly report. That builds on a reduction in fixed costs of around 25% since 2019. The company hasn’t said how many employees it hopes will take up the new offer. The previous round of the programme has already been costly: in the first nine months, Mercedes-Benz paid out around EUR 1.1 billion for restructuring, mainly related to the severance programme in Germany.

“With more product launches ahead and AI changing the way we work, we are focused on building a faster, more efficient and even more competitive Mercedes-Benz,” says Ola Källenius, Chairman of the Board of Management.

According to the report, AI is set to change how the group works across all functions, from R&D and production to sales and administration. In administration and sales, Mercedes-Benz is automating workflows and redesigning processes with AI to speed up decisions and free up resources.

The reopening of the programme comes as the outlook for the car business weakens. Mercedes-Benz Cars now expects an adjusted return on sales of 2–3% for 2026, down from 3–5% previously. The group cites a tougher market in China and higher costs for raw materials and product lifecycle measures in the fourth quarter. Group EBIT is now expected to be at last year’s level, rather than significantly above.

In the third quarter, the car division’s adjusted EBIT halved to EUR 560 million, and its adjusted return on sales fell to 2.5% from 4.8%. Car sales fell 8% to 407,232 vehicles, mainly because of intense competition in China. Outside China, sales rose, with growth of 5% in Europe and 6% in the US. Sales of fully electric cars reached a quarterly record, up 61% year on year.