Other listed car manufacturers are also being dragged down by Mercedes' falling share price, including Volvo Cars on the Stockholm Stock Exchange.
Mercedes primarily attributes this to a rapid deterioration of the situation on the Chinese market and is lowering its earnings forecast to 7.5-8.5 percent, from previously 10-11 percent. The operating result is expected to be "significantly lower" than last year's level.
The profit warning from Mercedes is the latest in a series of signs that the German automotive industry is under pressure. Volkswagen (VW) has signaled that it may be necessary to close car factories in Germany for the first time in the company's history, and BMW warned on September 10 of a worse-than-expected result.
The German car manufacturers are also struggling with strong headwinds when it comes to car sales in Europe, particularly when it comes to electric cars – which in turn can lead to large fines for car manufacturers when new emission regulations in the EU come into force in 2025.
