Mercedes-Benz Pushes 1,153-HP AMG SUV to Market as Workers Rebel Against Cost Cuts
Published on 07/06/2026 at 13:32 | Redaktion boerse-global.de
The Stuttgart automaker is racing in two opposite directions at once. On the product side, it is readying a 1,153-horsepower electric SUV under the AMG badge, promising a simulated V8 soundtrack and a near-700-kilometre range. On the factory floor, it is cutting 72 jobs in California, pushing for longer hours without extra pay, and watching thousands of employees take to the streets in protest.
The new flagship SUV, slated for an early-2026 debut, is designed to defend Mercedes’ grip on the luxury segment against rivals such as the electric Porsche Cayenne. Three electric motors send power to all four wheels, drawing from a 106-kWh battery pack that rides on a 800-volt architecture borrowed from Formula 1. The company claims rapid charging capability and a range of almost 700 kilometres. Inside, an AI-powered operating system runs across large screens, with a head-up display that projects navigation cues onto the road and over-the-air updates keeping the software fresh. Purists may balk at the synthetic gear shifts and artificial V8 growl, but Mercedes is betting the emotional thrill will win over customers.
Behind the glittering specs, the mood among employees is anything but electric. The carmaker’s plan to lift the weekly workweek from 35 to 40 hours at the same pay has ignited widespread anger. Delayed bonus payments have added fuel to the fire. The Bosch works council has called for an industry-wide round table, pointing to parallel tensions at Volkswagen and Porsche, where large-scale job cuts are underway, and at supplier Weber Magdeburg, which has slid into insolvency. Mercedes is also restructuring its North American research operations, eliminating 72 positions in Long Beach, California, as part of a global review driven by weak Chinese demand and soaring costs for electric mobility. Meanwhile, the compact G-Class will shift production to Hungary, where expenses are lower.
Should investors sell immediately? Or is it worth buying Mercedes-Benz?
On the Frankfurt exchange, the stock shows a tentative recovery that does little to mask the year’s damage. The shares closed Monday at €45.52, up 0.28% on the day and 4.48% higher than a week earlier. Since January, however, the stock has plunged 26.16% and sits nearly 27% below its December high of €62.30. It trades well beneath all major moving averages, trailing the 200-day line by almost 17%. The distance from the 52-week low of €42.64 is just under 7%. The dividend yield stands at an attractive 6.50%, and the price-to-earnings ratio is a low 7.57, factors that have prompted analysts to peg a consensus target of €59.69 — provided the labour conflict does not escalate further and the cost-saving measures do not disrupt production.
Germany’s new-car market offers a rare bright spot. Passenger-car registrations jumped 15.7% in June to 296,378 units, with battery-electric vehicles surging 78.2%, boosted in part by high fuel prices. For Mercedes itself, the picture remains split. A show-stopping SUV and cheap valuation may lure investors back, but the unresolved standoff with workers and the relentless cost pressures pose a serious test for CEO Ola Källenius.
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