Core Viewpoint - Mercedes-Benz is undergoing significant challenges, including a large-scale layoff plan and declining sales performance, which are indicative of its struggles in adapting to market changes and competition [4][5]. Group 1: Layoff and Cost-Cutting Measures - Mercedes-Benz is implementing its largest layoff plan in history, with approximately 4,000 employees accepting severance packages, including senior management receiving up to €500,000 (approximately 4.12 million RMB) [4]. - The company aims to save about €5 billion annually by 2027 through outsourcing decisions and not filling vacant positions, with a target of reducing production and fixed costs by approximately 10% [6]. - The layoffs are a response to poor sales performance, with the company reporting a global sales decline of 12% year-over-year in Q3, totaling 525,300 units sold [7]. Group 2: Sales Performance - In the first three quarters of the year, Mercedes-Benz's cumulative sales reached 1.6 million units, a decrease of 9% compared to the previous year [7]. - The company's total revenue for the previous year was €145.59 billion, down 4% year-over-year, with a significant drop in EBIT by 31% to €13.6 billion and net profit down 28.4% to €10.4 billion [9]. - The decline in the Chinese market has been particularly impactful, with revenue from China falling to €23.139 billion, a decrease of 8.5%, and total vehicle sales in China dropping by 7.3% [9]. Group 3: Controversial Operational Strategies - Mercedes-Benz has faced backlash for implementing paid features, such as charging for navigation services that are free on mobile apps, which has led to customer dissatisfaction [10][11]. - Additional charges for unlocking hardware features, such as rear-wheel steering, have also been criticized, with costs reaching up to 12,998 RMB for a three-year package [12][14]. Group 4: Strategic Focus in China - The company recognizes the importance of the Chinese market and is under pressure to maintain its market share amidst fierce competition from over 100 local manufacturers [20]. - Mercedes-Benz plans to launch 36 new models by 2027, including 17 electric vehicles, and aims to reduce local material costs by over 10% by 2027 [22][23]. - The management emphasizes that innovation and smart technology will not be exclusive to electric vehicles, indicating a continued commitment to fuel-powered vehicles as well [22].

Core Viewpoint - Mercedes-Benz is undergoing its largest-ever layoff plan, with around 4,000 employees accepting severance packages amid declining profits and sales, indicating significant challenges in its business transformation and performance [4][6]. Group 1: Layoff and Cost-Cutting Measures - Mercedes-Benz has initiated a layoff plan affecting approximately 4,000 employees, with severance packages designed based on seniority and tenure, including a "fast-track bonus" to encourage quick decisions [4][5]. - The company aims to save about 5 billion euros annually by 2027 through outsourcing decisions and not filling vacant positions, alongside a broader cost-cutting strategy targeting a 10% reduction in production and fixed costs [6][20]. - The layoffs are a response to disappointing sales performance, with global sales in Q3 2025 down 12% year-on-year, totaling 525,300 units, and a cumulative decline of 9% for the first three quarters [6][7]. Group 2: Financial Performance - In 2024, Mercedes-Benz reported total revenue of 145.59 billion euros, a 4% decline year-on-year, with EBIT down 31% to 13.6 billion euros and net profit dropping 28.4% to 10.4 billion euros [6][9]. - The company announced a dividend of 4.3 euros per share, down from 5.3 euros the previous year, and plans to repurchase up to 5 billion euros in shares over the next 24 months to bolster investor confidence [9]. - The significant drop in net profit for the first half of the year was attributed to a 55.8% decline, with revenue at 66.38 billion euros, down 8.6% year-on-year [9]. Group 3: Market Challenges and Strategic Responses - The decline in sales in China, a crucial market, was particularly severe, with revenue dropping 8.5% to 23.14 billion euros and vehicle sales down 7.3% to 683,600 units in 2024 [9][10]. - Mercedes-Benz's controversial operational strategies, such as charging for features that are free in competitor vehicles, have drawn criticism and may exacerbate its challenges in the Chinese market [10][12]. - The company plans to launch 36 new models by 2027, including 17 electric vehicles, and aims to reduce local material costs in China by over 10% by 2027 [20][21].