Mercedes has to save several billion euros, but does not reveal how
German carmaker Mercedes-Benz is planning major cost cuts amid a worsening business.
“In the coming years, we will reduce costs by several billion euros per year,” the company announced, but did not want to provide additional details. It is not known if this means large layoffs.
The German car industry is in quite a bit of trouble. The transition to electric cars is not going according to expectations, and the competition is also intensified in the Chinese market, where German car manufacturers record strong sales.
Volkswagen, otherwise the largest car company in Europe, has already threatened to close several factories in Germany, and in collective negotiations it is reportedly insisting on a general reduction in wages.
The tightening of the situation in the industry is also felt by Mercedes-Benz, which is therefore forced to adjust operating costs, the company’s spokesperson told the German agency DPA.
“The economic situation in the world remains extremely uncertain. We will remain financially strong and able to operate only with a corresponding increase in efficiency,” she added.
According to her, significant savings will be required, which will also include fixed costs. Mercedes-Benz is at a good starting point, she concluded.
Source: Seebiz
Photo: Pixabay, BIZLife
Source: bizlife.rs
