Mercedes-Benz braces for billions in operational cost cuts
Mercedes-Benz is shifting to a savings mode. The automotive giant plans to save several billion euros annually, as announced by the company's spokesperson. What the company will save on, and whether it will reduce employment, remains a secret.
- In the coming years, we will reduce our operational costs by several billion euros annually, - announced the Mercedes spokesperson in an interview with the dpa agency on Thursday. This comes as a result of the company's deteriorating condition.
- The economic situation worldwide remains extremely unstable. Only through sustainable efficiency increases can we maintain financial strength and operational capability, - she stated.
She added that significant savings, including those in fixed costs, have provided the company with a good starting position. - We continue to follow this path calmly but very consistently, - she announced. The company has not yet disclosed how it plans to reduce costs and whether this will involve employee redundancies.
Not only Mercedes has a problem
Yahoo Finance comments that the German automotive industry has recently faced significant challenges related to the transition to electric vehicles and increasing competition in the Chinese market.
Not only Mercedes is encountering problems. Volkswagen has been signalling them for a long time and plans to lay off tens of thousands of employees and does not rule out closing several German factories.
American Ford has also announced that it will cut 4,000 jobs in Europe, mainly in Germany and the United Kingdom. The decision is explained by fierce competition and a lack of public support for the automotive industry. Stellantis (Citroen, Peugeot, Fiat) and Audi are also planning job cuts in the EU.
