Daimler to Cut Jobs, Slash Personnel Costs
November 14 2019 - 3:53AM
Dow Jones News
By Max Bernhard
Daimler AG (DAI.XE) said Thursday that it plans to cut jobs and
save more than one billion euros ($1.10 billion) in personnel costs
by the end of 2022 to mitigate the high expenses of lowering the
emissions of its cars.
Chief Executive Ola Kallenius said efforts to cut vehicle
emissions would hit the car maker's earnings in 2020 and 2021. "To
remain successful in the future, we must therefore act now and
significantly increase our financial strength," he said.
The German company said it plans to save more than EUR1 billion
in personnel costs at its core Mercedes Benz Cars & Vans
divisions. It will also cap investments in property, plant and
equipment and in research and development at the 2019 level. It is
targeting a reduction of those expenses in the medium term at the
businesses, it said.
Mercedes-Benz Cars & Vans now expects an operating return on
sales of at least 4% in 2020 and at least 6% in 2022, excluding
possible import tariffs.
Daimler's Mercedes-Benz trucks business in Europe has started to
cut variable costs by EUR250 million and eyes lowering personnel
costs by EUR300 million by the end of 2022.
Daimler said it plans to increase its free cash flow, targeting
net liquidity of more than EUR10 billion.
Write to Max Bernhard at max.bernhard@dowjones.com;
@mxbernhard
(END) Dow Jones Newswires
November 14, 2019 03:38 ET (08:38 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.