Daimler CEO Ola Källenius sees the reduction of exhaust emissions as the central task for the coming years. In order to be able to afford the high costs for sophisticated technology, many other Group divisions must save massively. By the end of 2022, the personnel costs in the car division Mercedes-Benz Cars to fall by more than a billion euros, said the Dax Group on Thursday in Stuttgart. For this purpose, both in management and in the areas not directly concerned with the car, jobs are to be reduced.
"The cost burdens of meeting the carbon targets require comprehensive measures to increase efficiency in all areas of our business, including streamlining our processes and structures," Källenius said. In order to improve the development of the cash position, Daimler intends to cap investments in property, plant and equipment and in research and development at the level of the current year and reduce them in the medium term.
The news was not well received by investors. After the start of trading, the price of the Daimler share plummeted by up to 4.7 per cent, most recently it was 3.3 per cent down on the previous year at 51.76 euros. Recently, the paper had made good ground well from the annual low in August this year at just over 40 euros.
Workers announce resistance
Details of the number of affected entities initially did not name the group. It is in close communication with the employee representatives, it said. Head of Works Council Michael Brecht had mentioned at the end of last week the figure of 1100 management posts to be deleted. According to the announcement, Daimler also wants to cut variable costs by 250 million euros and save 300 million euros by the staff by the end of 2022 in the truck segment.
Daimler sets new profit targets for the new structure. For the Mercedes-Benz Cars & Vans division, the Stuttgart 2020 plan aims for a return on sales of at least four percent before any possible tariffs. In 2022, it should amount to at least six percent. Daimler had always aimed for a target return of 8 to 10 percent in the core business of passenger cars - that is, without the vans. However, due to the sluggish car market and the costs of the diesel affair, it was already well below that. In the truck and bus business, Daimler aims for a return on sales of at least 5 percent in 2020, and is set to climb to at least seven percent in 2022.
