German luxury automaker Mercedes faces turbulent times as EV sales plummet and profit warnings loom. The company's bold all-electric strategy backfires, with a 25% drop in EV sales year-over-year. Chinese market stagnation compounds woes, forcing a reevaluation of the firm's global approach.

Regulatory pressures, high costs, and supply chain bottlenecks plague the industry. The automaker plans to slash its dealer network, potentially reducing main dealers from 114 to 70-80. This consolidation sparks interest from international buyers but raises concerns about employee morale.

Production cuts at key plants reflect a failed luxury-focused strategy, as high-end model demand continues to decline. The impact ripples through the Stuttgart region, signaling broader economic implications.