cuts for 1 billion from now until 2022

LESS WORKING POSITIONS – The costs for the development of electric motors and autonomous driving are affecting the profitability of many car manufacturers, now grappling with strategies of cuts and mergers to continue to invest with minimal repercussions on earnings. An example is the Daimler, the group of the Mercedes and the Smart, which announced in the past few hours a savings plan worth 1 billion euros until 2022: by this time Mercedes will cut 10% of the figures in management. The division of Mercedes that deals with commercial vehicles, moreover, will get savings for 300 million euros in personnel expenses and for 250 million euros in fixed costs.

GAIN IN DROP – The strategy was put by the managing director Ola Kallenius (in the picture), head of the Daimler from May 2019, called to intervene after the German group has seen the estimated gross earnings for 2019 fall from 5% to 3%. Kallenius must also return the division for commercial vehicles to profit, which in the plans of the Daimler will have to reach 4% profit in 2020 and 6% in 2022.