Bulletin: Raw Materials Spike Offsets Efficiencies At Mercedes-Benz In A Weak First Quarter

This report does not constitute a rating action. MILAN (S&P Global Ratings) May 5, 2026--Mercedes-Benz?s (MB) first quarter was weak but still fell within its guided targets; Mercedes-Benz Cars aims for a 3%-5% return on sales, as defined by Mercedes, and for Mercedes Benz Vans it?s 8%-10%. We anticipate MB?s product pipeline will support gradual improvements; the CLA, GLB, and GLC order books are filled well into second-half 2026, the refreshed S-Class begins in the U.S. and China, and a wave of SUV updates (GLS, GLE, GLE coupé, and AMG versions) will follow closely. China will remain a weak spot for MB this year. Any volume stabilization will be linked to the fortunes of its luxury flagship vehicle in the

...May 5, 2026 This report does not constitute a rating action. MILAN (S&P Global Ratings) May 5, 2026--Mercedes-Benz's (MB) first quarter was weak but still fell within its guided targets; Mercedes-Benz Cars aims for a 3%-5% return on sales, as defined by Mercedes, and for Mercedes Benz Vans it's 8%-10%. We anticipate MB's product pipeline will support gradual improvements; the CLA, GLB, and GLC order books are filled well into second- half 2026, the refreshed S-Class begins in the U.S. and China, and a wave of SUV updates (GLS, GLE, GLE coupT, and AMG versions) will follow closely. China will remain a weak spot for MB this year. Any volume stabilization will be linked to the fortunes of its luxury flagship vehicle in the second quarter as well as the new electric long- wheel-based GLC, expected in the second half. Meanwhile, pricing pressure in China is not likely to subside. This has led MB and some direct peers to lower their manufacturer's suggested retail prices. MB and peers now face...

Bulletin