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1100 Mercedes-Benz Employees May Lose Jobs In Dialmer’s Cost-Cutting Plan

With The Tougher Emissions Rules Set To Hit The Profits Of Daimler In 2020 And 2021, The German Automaker Has Announced Cutting Staff Costs At Its Mercedes-Benz Business To Save £850 Million (approx. Rs 7,858 Crore) By The End Of 2022.

News Nation Bureau | Edited By : Anurag Singh | Updated on: 17 Nov 2019, 08:27:30 AM
1100 Mercedes-Benz Employees May Lose Jobs In Dialmer’s Cost-Cutting Plan

1100 Mercedes-Benz Employees May Lose Jobs In Dialmer’s Cost-Cutting Plan (Photo Credit: File Photo)

New Delhi:

With the tougher emissions rules set to hit the profits of Daimler in 2020 and 2021, the German automaker has announced cutting staff costs at its Mercedes-Benz business to save £850 million (approx. Rs 7,858 crore) by the end of 2022. The move will include the loss of 10 per cent of all management jobs, which is believed to equate to around 1,100 employees, reported Autocar India.

While speaking at an investor conference, Ola Kallenius revealed that the Daimler has spent an additional £430m (approx Rs 3,975 crore) on electric car development this year, as well as paid around £750m (approx Rs 6,930 crore) to regulators after admitting that 7,00,000 diesel cars it sold didn’t meet emissions regulations.

Kallenius said, “The industry is in transformation.” “The expenditure needed to achieve the [European Union’s] CO2 targets requires comprehensive measures to increase efficiency in all areas of our company,” he added.

It is to be noted that Ola Kallenius is a chief executive of Daimler who took over from Dieter Zetsche in May. 

Importantly, Mercedes is under particular pressure to meet European emissions targets by next year, with the firm struggling to hit the 95g/km average from its current average of 138g/km for all cars sold.

In a statement, Daimler said it needed to sell more electric vehicles to meet tougher European Union rules which force carmakers to cut carbon dioxide emissions from cars by 37.5 percent by 2030 compared with 2021 levels and following a 40 per cent cut between 2007 and 2021.

The company also noted that it expected to achieve a return on sales from operating activities at Mercedes-Benz Cars & Vans of at least 4 percent in 2020 and at least 6 percent in 2022.

Also Read: Maruti Suzuki Offers Discount Up To Rs 75,000 Vitara Brezza, Dzire, Swift Diesel

In India, Mercedes-Benz has recently launched the V-class Elite at Rs 1.1 crore. The top-end Elite model is based on the V-class facelift that was introduced in international markets earlier this year.

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First Published : 17 Nov 2019, 08:27:30 AM