Hand on the purse at Daimler

Daimler is making significant cuts in expenditures in areas such as personnel. The German parent company of Mercedes-Benz announced this in a strategic update on Tuesday. It has also become clear that Daimler wants to focus more on the market for luxury cars and electric vehicles.

Over the next five years, the Germans want to reduce their fixed costs by 20 percent. The company also looks at its research expenditure. Staff costs must also be cut. Last year, Daimler announced that it wants to cut ten thousand jobs. The corona crisis added another 10,000 jobs. It is not clear whether the new round of cutbacks means that even more jobs will disappear.

CEO Ola Källenius also announces that in the coming years Daimler will mainly target the market for more expensive, more luxurious cars. The company will continue to make cheaper cars, but wants to focus mainly on the more expensive segment. That is why extra attention is paid to Maybach, a luxury label from Daimler. It doesn’t stop there. Not only can you count on more Maybach models, including one based on the EQS, but also electrified versions and fully electric versions from AMG and the G family. It was already known that Mercedes-Benz would come with an electric G-class. Mercedes-Benz announced a line of electric newcomers yesterday, including the EQE and SUV versions of both the EQS and EQE. These larger models will all use the already announced EVA architecture. The smaller EQA and EQB, electric versions of the GLA and GLB respectively, fully share their base with their petrol and diesel siblings. In the future, from 2025 onwards, the more compact models from Mercedes-Benz will also be based on their own. Daimler is developing the MMA platform for this.

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