“Struggling to match rivals’ scale and efficiency in smaller cars, as well as their success in China, Stuttgart-based Daimler has fallen further behind German peers BMW and Volkswagen,” reports Reuters. Alone by bringing outsourced SAP systems in-house, Daimler wants to save €150 million (nearly $200 million.)
A lot of the work will be done in new Daimler IT centers in India and Turkey.
This is part of a huge austerity program that aims at cutting annual costs by 2 billion euros for the Mercedes-Benz division by the end of 2014. The bulk of the savings must be achieved this year.
Where will the other €1,850 million be saved? Ominously, German Focus Magazin reports that Mercedes-Benz plants in Germany are less efficient than plants elsewhere.