Daimler targets $6.7bn in cost savings – Report

Daimler targets $6.7bn in cost savings – Report

Mubasher: Daimler is planning to make EUR 6 billion ($6.78 billion) in cost savings and efficiency gains by 2021 at Mercedes Benz passenger cars, Reuters reported, citing Manager Magazin.

In addition, the German auto giant looks to cut costs by EUR 2 billion at its Daimler Trucks operations, the German business magazine said, without citing sources, adding that nearly 30,000 Mercedes-Benz cars with defected electronics require costly reworking.

Those savings are being pursued by Ola Kaellenius, who is set to become the CEO next May, the news report said, adding that Kaellenius does not plan to renew projects with Renault and Nissan.

This came after Daimler said it would take cost saving measures after its profit dropped in the fourth quarter of 2018, with its operating profit dropping 22%, due to trade tensions, surging costs for developing electric vehicles and downturn in the auto industry.

On a side note, Daimler plans to become a carbon neutral auto manufacturer by 2040, ensuring that all new vehicles and production methods are operated in ways that do not result in carbon dioxide emissions, Manager Magazin said.