Daimler Plans To Cut Administration Costs By 20%
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Incoming Daimler boss Ola Kaellenius is working on a cost cut program to reach profit margin targets which are threatened by global trade woes and ramp up issues at factories, Handelsblatt reported, citing company sources.
Kaellenius, who will take over from Dieter Zetsche after the company’s annual general meeting on May 22, has been working for months on a cost cut initiative, dubbed “Move”, which is expected to be ready in the summer, the paper said.
Central administration costs are to be cut by about 20%, the paper said, adding billions of euros in efficiency potential would be targeted.
Daimler declined to comment.
Kaellenius said earlier this month that Daimler will cut development costs of new Mercedes-Benz cars by a significant amount by 2025 and will intensify alliances with rivals as a way to improve margins.
Questions & Answers
Q.What is the name of the new cost-cutting initiative at Daimler?
What is the name of the new cost-cutting initiative at Daimler?
The new cost-cutting initiative, which has been in development for months, is reportedly dubbed “Move”. It is expected to be finalised and ready sometime during the summer.
Q.Who is leading the new cost-cutting program at Daimler?
Who is leading the new cost-cutting program at Daimler?
The new Daimler boss, Ola Kaellenius, is leading the cost-cutting program. He will officially take over from Dieter Zetsche following the company's annual general meeting on May 22.
Q.Why is Daimler implementing these cost-cutting measures?
Why is Daimler implementing these cost-cutting measures?
Daimler is implementing these measures to achieve profit margin targets. These targets are currently under threat due to global trade issues and production ramp-up problems at its factories.
Q.What other cost-saving strategies has Daimler announced?
What other cost-saving strategies has Daimler announced?
Daimler plans to significantly reduce the development costs of new Mercedes-Benz cars by 2025. It will also deepen alliances with rival companies as a method to improve overall profit margins.
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