Found in today's edition of
T-Online.de News earlier today
** (Translated from German into English By Google Translation-I'm far too lazy to do this myself with long texts. Unless I get paid for it
)
Historic Changing of the Guard
A Turning Point for Mercedes: A Global Brand Is Humiliated
A watershed moment in the German car market: Mercedes plummets while a rival overtakes it. A bitter humiliation for the Swabian automaker and the price paid for a self-inflicted error with fatal consequences.
The German car market has gone into reverse. In January, new registrations fell by 6.6 percent to 194,000 vehicles, reports the Federal Motor Transport Authority (KBA). Private customers, in particular, are holding onto their money. But while the industry as a whole is struggling, Mercedes-Benz is experiencing a historic humiliation.
Skoda Overtakes the Star
Winners of the Crisis: Many drivers are currently focusing more on price and practicality. Skoda is benefiting from this.
"Simply clever": Many drivers are currently focusing more on price and practicality. Skoda is benefiting from this.
It's a real turning point in the statistics: Skoda, the former budget brand, overtook Mercedes in January and is now number two in Germany, right behind Volkswagen. While the Czechs saw a 12 percent increase, the Stuttgart-based company suffered a 6.5 percent decline.
The reasons are partly self-inflicted: Mercedes CEO Ola Källenius revamped the brand with a "Luxury First" strategy. He eliminated entry-level models and raised prices. In uncertain times, this is proving costly. But pricing policy isn't the only problem facing the Swabian automaker.
Mercedes under pressure: The four key areas of concern
Market leader in danger: Mercedes CEO Ola Källenius is fully committed to luxury, but is losing many existing customers to the competition.
Behind the weak figures lies a deep imbalance. The company is fighting on several fronts simultaneously:
Sales crisis in global markets:
Declining sales are severely impacting the balance sheet. Particularly in China and the USA, import tariffs and competitive pressure are eroding profits.
Radical cost-cutting measures:
With billions spent on staff reductions and process optimization, the company is attempting to significantly reduce fixed costs.
Profit halving: Net income plummeted by 50 percent to €3.87 billion (after the first nine months of 2025, the most recent figures available). A disaster for the Stuttgart-based company.
Stuttering electric motor:
High prices and design criticism are slowing down electric mobility. The aggressive luxury strategy has already been internally avoided as the "L-word."
It's not just dealers complaining about the company's high prices. The ADAC (German Automobile Club) is also criticizing the company. Many customers are already switching to competitors like Skoda, where they can find the cars that have simply become too expensive at Mercedes.
The result is also remarkable for Skoda's parent company, Volkswagen. While the subsidiary is thriving, the core VW brand slumped by a staggering 17.5 percent in January.
*** Please note: Read discerningly. The source is also frequently perceived as being partisan and promoting an ideology-driven progressive liberal agenda (although arguably not indicated in this particular article). T-Online News is a bit of the N.Y. Post's German language quasi-nemesis of sorts.
nypost.com
