Mercedes‑Benz said it will present a broader 2030 strategy update next year that keeps China at the centre of its plans while seeking ways to reduce reliance on the market and to improve competitiveness in Europe.
What Mercedes said
On an Oct. 28 analyst call, CEO Ola Källenius said the group will carry out a detailed review of its China business as part of a wider strategic update to be published next year. “If you’re a global car company like Mercedes, there is not a play where you put China aside,” Källenius said.
Finance chief Harald Wilhelm told the same call that Mercedes is working to localise supply chains for China‑built vehicles to cut costs and increase competitiveness, and that the automaker is looking to reduce dependence on Chinese profit pools. The company also said it will relaunch a voluntary severance programme for indirect staff from December, after a prior round that produced sizeable participation.
Why Eastern Europe matters
Källenius explicitly pointed to “lower‑cost manufacturing opportunities in Eastern Europe,” noting Mercedes already has “a significant presence in Hungary, Romania and Poland.” That reference places Central and Eastern Europe (CEE) squarely in the company’s cost and capacity calculus as Mercedes weighs how to rebalance investment between China, the US and Europe.
The call also reviewed recent cost items: Mercedes booked about €1.8 billion in provisions tied to an earlier severance programme in 2025, and executives said further investment choices in Germany will depend on measurable productivity and cost improvements. Källenius compared labour costs across regions, saying US wages were at roughly 80% of German levels — a benchmark the company hopes Germany can narrow.
