Mercedes-Benz Cuts 2026 Profit Forecast on China Woes, Shares Drop 4%

Mercedes-Benz lowered its 2026 profit outlook, citing rising costs and intensifying challenges in China, and flagged a significant decline in free industrial cash flow. The announcement triggered a 4% fall in its share price. This signals weakening demand and margin pressure in the premium auto sector, with implications for German industrial sentiment and broader European growth expectations.

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