By on February 10, 2020

2018 Mercedes-Benz X-Class Power - Image: Mercedes-Benz

In November, Daimler announced a restructuring plan that called for the elimination of 10,000 jobs, claiming the effort would result in an estimated 1.4 billion euros ($1.5 billion) in savings by the end of 2022. Chairman Ola Källenius may just be getting warmed up.

According to German outlet Handelsblatt, sources within the company claim austerity measures will be expanded at Tuesday’s investor conference. Källenius is said to raise the job cut figure to 15,000 while scaling back (or dropping) several side businesses that aren’t turning a profit. As well, the automaker will likely axe a few models that don’t fit in with the core brand’s luxury image, starting with the Nissan Navara Mercedes-Benz X-Class.

More details will arrive after tomorrow’s meeting, though Handelsblatt says to expect a cancellation of successors for the S-Class’ convertible and coupe variants. Meanwhile, the AMG CLS and GT will reportedly be “merged” into an singular electric performance coupe. Surely that won’t leave AMG fans in an uproar, especially not after the GT had its best sales year on record (by a huge margin) in 2019…

Most of the job cuts are expected to come by way of early retirement and juiced-up severance packages; however, there should also be programs to help some employees transition into part-time work. The number is less important than the savings, however. Daimler just wants to see how much higher it can push the €1.4 billion restructuring target.

As for side projects on the chopping block, the German paper only referenced the Lab1886 innovation center. The site is responsible for various mobility projects, or at least their inception. But most are profit-losing mobility programs, data management software, connected services and the like. Daimler is currently looking to offload its shares. We’ll see what other ugly growths Källenius wants to see shaved off the company’s back on Tuesday.

[Image: Daimler]

 

Get the latest TTAC e-Newsletter!

Recommended

9 Comments on “Daimler: Here Come the Savings, There Go the Jobs...”


Read all comments

Back to TopLeave a Reply

You must be logged in to post a comment.

Recent Comments

  • VWGolfGuy: Damn, don’t f#*% with VAG
  • MRF 95 T-Bird: At one time in the 80’s the family fleet in my folks household ran the gamut from my sisters 77 Toyota...
  • la834: The Chevy 2.8L V6 was considered, and at least one prototype built, but I’m unaware of the Buick 3.8...
  • ToolGuy: And then specific to Nissan’s situation with Titan (conjecture): – If you need a truck you might...
  • ToolGuy: For purposes of this post, assume I know nothing about the automotive industry, not much about pickup...

New Car Research

Get a Free Dealer Quote

Who We Are

  • Matthew Guy
  • Timothy Cain
  • Adam Tonge
  • Bozi Tatarevic
  • Chris Tonn
  • Corey Lewis
  • Mark Baruth
  • Ronnie Schreiber