Daimler Seeks 1 Billion Euros In Savings At Mercedes-Benz By Cutting Jobs

Daimler shares were down 2.3% in early trading at 52.17 euros, the biggest decline on Germany's DAX blue-chip index, which was down 0.3%.

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Daimler said it needed to sell more electric vehicles to meet tougher European Union rules

Tougher emissions rules will hit Daimler's profits in 2020 and 2021, prompting the German carmaker to seek more than 1 billion euros ($1.1 billion) in savings from cutting staff costs at its Mercedes-Benz business by the end of 2022, it said on Thursday.

Daimler shares were down 2.3% in early trading at 52.17 euros, the biggest decline on Germany's DAX blue-chip index, which was down 0.3%.

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Mercedes-Benz Cars

Management positions will be cut by around 10%, and company said it would also seek more than 300 million euros from cutting personnel costs - plus another 250 million euros in fixed costs - at its trucks business.

Daimler said it needed to sell more electric vehicles to meet tougher European Union rules which force carmakers to cut carbon dioxide emissions from cars by 37.5% by 2030 compared with 2021 levels, and following a 40% cut between 2007 and 2021.

The company said it expected to achieve a return on sales from operating activities at Mercedes-Benz Cars & Vans of at least 4% in 2020 and at least 6% in 2022.

Mercedes-Benz expects car sales to grow by around 3% in 2020, but said potential trade tariffs and Brexit could depress the return on sales by up to 1%.

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Earlier this year, Daimler had said it hoped to achieve a return on sales of 3% to 5% at Mercedes-Benz Cars.



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