Mercedes-Benz CEO Ola Källenius says Germany needs a “productivity offensive” to remain competitive as the automaker faces mounting pressure from China and a challenging global market.
The chief executive of Mercedes-Benz, Ola Källenius, says Germany needs to launch a “productivity offensive” to remain competitive amid increasing pressure from countries such as China.
Källenius was speaking to journalists after the company reported that earnings from its car division fell by 26% during the second quarter of 2026. Mercedes also reduced the value of its investments in China by €704 million (R13.1 billion), an accounting adjustment that contributed to a nearly 94% decline in profits from its car division.
This followed a further 30% decline in Mercedes vehicle deliveries in China during the final quarter, after sales had already fallen to their lowest level since 2016.
On the positive side, the company’s overall net income increased by 13.5% to €1.09 billion (R20.4 billion), helped by strong performances from its vans and financial services businesses.
