Daimler Plans To Cut Administration Costs By 20%: Report

Ola Kaellenius, who will take over from Dieter Zetsche after the company's annual general meeting on May 22, has been working for months on a cost cut initiative

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Daimler's central administration costs are to be cut by about 20%,

Incoming Daimler boss Ola Kaellenius is working on a cost cut program to reach profit margin targets which are threatened by global trade woes and ramp up issues at factories, Handelsblatt reported, citing company sources.

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Kaellenius, who will take over from Dieter Zetsche after the company's annual general meeting on May 22, has been working for months on a cost cut initiative, dubbed "Move", which is expected to be ready in the summer, the paper said.

Central administration costs are to be cut by about 20%, the paper said, adding billions of euros in efficiency potential would be targeted.

Daimler declined to comment.

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Kaellenius said earlier this month that Daimler will cut development costs of new Mercedes-Benz cars by a significant amount by 2025 and will intensify alliances with rivals as a way to improve margins.

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