Mercedes Denies Moving €5 Billion Cost-Cutting Target Up By One Year To 2026

According to foreign media reports, German automaker Mercedes-Benz stated that the company is expected to reduce costs by 5 billion euros (approximately 5.9 billion dollars) by the end of 2027 as planned, and denied reports that its efficiency improvement plan targets would be achieved a year ahead of schedule. A spokesperson for Mercedes-Benz told Reuters, "The plan is progressing according to the established scheme."

EQS; Image source: Mercedes-Benz

Previously, the German media Manager Magazin cited sources as saying that Mercedes-Benz has adjusted the deadline for completing its cost-cutting targets to the end of 2026.

Mercedes-Benz is currently advancing a comprehensive management overhaul while aggressively cutting costs to address a critical development milestone in 2026 that is crucial for the company's survival.

The management change includes the departure of Gorden Wagener, who has long served as the design director of Mercedes-Benz. He will officially leave the company on January 31 next year.

In September this year, the former production director Jörg Burzer was promoted to Chief Technology Officer; Michael Schiebe, the head of luxury brand operations such as Mercedes-AMG, Maybach, and G-Class off-road vehicles, was also promoted to the Mercedes-Benz Management Board.

To reverse its declining market share in China, Mercedes-Benz is accelerating the launch of new products, planning to introduce more than 40 new models by 2027.

However, the market performance of Mercedes-Benz's recently launched electric models has been unsatisfactory—the sales growth of the all-electric version of the G-Class SUV has been sluggish, and the EQS and EQE electric sedans have not gained widespread recognition among Chinese consumers.