R&D costs will also be significantly reduced.
Editor’s note: This article is from “Future Car Daily” (WeChat public ID: auto-time), author: NIU Xiao Tong.
Author | Niu Xiaotong
Editor | Li Huanhuan
In the context of the global auto market, Daimler, who is a car giant, has to cut expenses and seek self-help.
November 14, Daimler announced that in order to maintain sustainable growth of the automotive business, as well as speed up the overall transition to electric and autopilot will perform a series of The cost control plan, which includes cutting the cost of personnel by more than 1 billion euros worldwide by the end of 2022.
Before Bloomberg reported in early November, Daimler will cut 1,100 executive positions worldwide, accounting for about 10% of its total management.
Specifically, Daimler will adjust its business units including Mercedes-Benz, Daimler trucks and mobile travel, in which the truck business will cut the cost of personnel by 300 million euros by 2022, Mercedes-Benz truck business It will cut 100 million euros in materials and labor costs. In addition, Daimler also announced that it will control its investment in real estate, plant, research and development in the future in 2019.
It all stems from the growing financial pressure on operating companies.
This year alone, Daimler has issued two profit warnings. Its second-quarter earnings report showed that Daimler Group’s revenue in the second quarter of 2019 was 42.65 billion euros, and the loss before interest and taxes was 1.56 billion euros. This is also the first quarterly loss of Mercedes-Benz since 2010. At the beginning of May, Daimler CEO Kang Linsong (OlaKaellenius) has said that by 2025, Daimler will significantly reduce the research and development costs of Mercedes-Benz.
According to the latest According to the financial report , in the third quarter, the profit margin of the Mercedes-Benz brand fell to 6% from 6.3% in the same period of last year. Kang Linsong said that in the future, Daimler “must significantly reduce costs and continue Increase cash flow.”
It’s not just Daimler that wants to do everything to cut costs.
A number of international car giants are trying to cut costs. In May, Ford announced a layoff of 7,000 people worldwide, accounting for about 10% of its global workforce. Volkswagen announced in June that it plans to cut up to 4,000 non-manufacturing jobs in Germany. Nissan Motors also announced this year that it will lay off 12,500 people worldwide, accounting for about 10% of its global workforce.
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I am Niu Xiaotong, the author of the Future Auto Daily, focusing on the dynamics of the car and travel, and welcome the news and exchanges. My WeChat is NEXT0117, please add a note name, position, company.
