Mercedes-Benz Group AG plans to buy back up to €3 billion ($3.2 billion) worth of ** and take further steps to reward shareholders after its cash flow exceeded expectations.
The German luxury automaker said the new buyback would begin as soon as an ongoing program worth 4 billion euros ended. This is the first buyback in 15 years and was announced about a year ago.
In recent months, automakers have benefited from pent-up demand after years of chain disruptions, returning more money to shareholders. General Motors, Ford and Stellantis spent a combined $22.7 billion last year on buybacks** and paid dividends, while Renault last week proposed its largest shareholder dividend plan in five years.
Mercedes' American Depositary Receipts (ADRs)**33%。The company's better-than-expected preliminary industrial free cash flow reported earlier this month raised some expectations for the extension of its buyback program.
Like its peers, Mercedes has long benefited from ample orders, which has helped offset some of the economic headwinds affecting the automotive industry. Sales are expected to return to normal this year as rising living costs and borrowing costs weigh on consumption. In addition, the company is facing the waning enthusiasm for electric vehicles in the European market and Tesla (Tesla Inc.).The pressure of frequent price cuts.