Daimler plans €8B cost-cutting program – report

Thursday, 18. April 2019 13:09

The next chief executive of Daimler AG launched an initiative to save €6 billion by 2021 in the Mercedes-Benz division and another €2 billion from operations at Daimler Trucks, according to unnamed sources from a report published on Thursday by Manager Magazin. Ola Kaellenius is scheduled to take the helm in a month.

The media speculation comes after an announcement in February that cost cuts would be implemented, where the company cited global trade friction and the strain from building electric vehicles. The German manufacturing sector has been shrinking for the past three months, according to a widely watched survey.

Revenue may be impacted by €2 billion due to a glitch in electronics systems installed in 30,000 Mercedes-Benz units in Alabama, according to the news organization, which learned it would translate to as much as €500 million in first-quarter profit. Of note, insiders revealed plans for Daimler to become carbon neutral by 2040. Kaellenius is said to be preparing to scrap joint projects with Renault SA and Nissan.

Related Links: Nissan Motor Co. Ltd.Renault S.A.Daimler AG
Breaking the News / IT