Mubasher: Daimler said it would seek EUR 1 billion ($1.10 billion) in savings from reducing staff expenses at its Mercedes-Benz business, by the end of 2020, according to Reuters.

The German auto giant would be prompted to cut savings, as stricter emissions rules that would take a heavy toll on its profits in 2020 and 2021.

Managerial positions will be trimmed by nearly 10%, while more than EUR 300 million would be targeted by cutting personnel costs, with another EUR 250 million in fixed costs at trucks business division.

More focus would be needed to sell a bigger number of electric vehicles (EVs) in order to meet European Union rules, which will oblige car companies to lower carbon dioxide emissions by 37.5% by 2030 from 2021 levels.

Daimler expected return on sales from operations at its Mercedes-Benz cars and vans division to reach at least 4% for 2020 and at least 6% in 2022.

Mercedes-Benz car sales are set to grow by nearly 3% next year, yet return on sales would pulled down by as much as 1%, the auto manufacturer said, citing Brexit and potential trade tariffs.