https://www.autoblog.com/2019/04/19/daimler-mercedes-cut-6-billion-euros-10000-jobs/
Daimler to cut $6.75 billion at Mercedes, sever ties with Renault-Nissan
10,000 jobs to go, magazine says, and there was a costly error from Tuscaloosa
Reuters
Apr 19th 2019 at 8:45AM
FRANKFURT, Germany — Daimler is looking to make 6 billion euros ($6.75 billion) in cost cuts and efficiency gains by 2021 at Mercedes-Benz passenger cars and a further 2 billion euros at its Daimler Trucks division, Manager Magazin said on Thursday.
Around 10,000 jobs will be cut at Daimler, the business-focused magazine said, without citing sources. The separations will likely be voluntary, as Daimler has previously ruled out layoffs until the end of 2020.
Daimler declined to comment on the cost savings figure and on Manager Magazin's report.
The magazine said the savings are being sought by Daimler's Ola Kaellenius, who will become CEO in May.
Daimler said in February it would pursue cost saving measures after fourth-quarter operating profit plunged 22 percent, hit by trade wars, rising costs for developing electric cars and an industry downturn.
Manager Magazin said around 30,000 Mercedes-Benz cars with faulty vehicle electronics were produced at its plant in Tuscaloosa, Alabama, requiring expensive reworking which was causing production delays.
Those delays had led to a revenue shortfall of around 2 billion euros and could depress first quarter earnings by up to half a billion euros, the report said.
Daimler is due to release first quarter earnings on April 26.
Manager Magazin also said Daimler plans to become a carbon neutral company by 2040, ensuring that all new cars, production methods and suppliers work in ways which do not produce carbon dioxide emissions.
Separately, Kaellenius will not renew common projects with French carmaker Renault and Nissan, letting an alliance between the carmakers lapse, the magazine said. The Infiniti Q30 and QX30 are built on a Mercedes platform. Mercedes plans to explore more collaboration with Geely, which is Daimler's biggest shareholder with a 9.7 percent stake.
https://www.financialexpress.com/au...on-euros-in-cost-savings-at-mercedes/1552980/
Manager Magazin said around 30,000 Mercedes-Benz cars with faulty vehicle electronics were produced at its plant in Tuscaloosa, Alabama, requiring expensive reworking which was causing production delays.
By: Reuters | Published: April 19, 2019 10:58 AM
0
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Daimler is looking to make 6 billion euros ($6.75 billion) in cost savings and efficiency gains by 2021 at Mercedes-Benz passenger cars and a further 2 billion euros at its Daimler Trucks division, Manager Magazin said on Thursday.
Around 10,000 jobs will be cut at Daimler, the business-focused magazine said, without citing sources. Daimler declined to comment on the cost savings figure and on Manager Magazin's report but has previously ruled out forced redundancies until the end of 2020.
The magazine said the savings are being sought by Daimler's Ola Kaellenius, who will become Chief Executive in May. Daimler said in February it would pursue cost-saving measures after fourth-quarter operating profit plunged 22 per cent, hit by trade wars, rising costs for developing electric cars and an industry downturn. Manager Magazin said around 30,000 Mercedes-Benz cars with faulty vehicle electronics were produced at its plant in Tuscaloosa, Alabama, requiring expensive reworking which was causing production delays.
Those delays had led to a revenue shortfall of around 2 billion euros and could depress first-quarter earnings by up to half a billion euros, the report said. Daimler is due to release first-quarter earnings on April 26.
Manager Magazin also said Daimler plans to become a carbon neutral company by 2040, ensuring that all new cars, production methods and suppliers work in ways which do not produce carbon dioxide emissions. Separately, Kaellenius will not renew common projects with French carmaker Renault and Nissan, letting an alliance between the carmakers' lapse, the magazine said.
Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.
https://www.dw.com/en/mercedes-announces-massive-job-cuts/a-1724298
Mercedes Announces Massive Job Cuts
DaimlerChrysler announced that one out of nine jobs would be cut from the workforce at its German Mercedes unit in an effort to reduce costs.
Workers in Germany aren't being handled with kid gloves
DaimlerChrysler said in a statement on Wednesday evening that it would slash 8,500 jobs at its top-of-the-line car maker Mercedes within the next year.
The announcment confirms speculation that had been circling over the past week that Mercedes planned to reduce its German workforce of 94,000 in order to cut costs.
Mercedes assembly line in Tuscaloosa, AL, USA
Dieter Zetsche, who took control of Mercedes this month and is set to become chief executive of DaimlerChrysler at the beginning of 2006, outlined the plan to German-US auto maker's supervisory board during a meeting in the U.S. on Wednesday.
The stock market reacted positively to the speculation on Wednesday, with DaimlerChrysler shares jumping up by nearly 3 percent to 45.21 euros (US$54.27) in morning trading at the Frankfurt Stock Exchange.
Cuts via attrition
Jobs would be cut via so-called attrition or "natural wastage," where people leaving the company would not be replaced, since the German Mercedes employees are protected by an agreement of no compulsory redundancies until 2012.
The redundancy payments would knock around 100 million euros off of Mercedes' earnings, according to reports.
Mercedes plant in Bremen
The job loss would be a hard blow for company morale. It was only two summers ago that weeks of negotiation led to wage accords, and the agreement that German jobs would be secured in the long term. The company appears to be backing away from the agreement, however.
Past agreements
In July 2004, Daimler workers in Germany agreed to forego wage increases in exchange for securing 6000 production jobs in the Mercedes plant at Sindelfingen. In turn, DaimlerChrysler promised to halt layoffs until 2012.
DaimlerChrysler had threatened to produce its new C-Class car in Bremen and South Africa if workers didn't agree to cost 500 million euros per year in cost-cutting measures. At the time, the IG Metall trade union had praised the compromise.
Daimler to cut $6.75 billion at Mercedes, sever ties with Renault-Nissan
10,000 jobs to go, magazine says, and there was a costly error from Tuscaloosa
Reuters
Apr 19th 2019 at 8:45AM
FRANKFURT, Germany — Daimler is looking to make 6 billion euros ($6.75 billion) in cost cuts and efficiency gains by 2021 at Mercedes-Benz passenger cars and a further 2 billion euros at its Daimler Trucks division, Manager Magazin said on Thursday.
Around 10,000 jobs will be cut at Daimler, the business-focused magazine said, without citing sources. The separations will likely be voluntary, as Daimler has previously ruled out layoffs until the end of 2020.
Daimler declined to comment on the cost savings figure and on Manager Magazin's report.
The magazine said the savings are being sought by Daimler's Ola Kaellenius, who will become CEO in May.
Daimler said in February it would pursue cost saving measures after fourth-quarter operating profit plunged 22 percent, hit by trade wars, rising costs for developing electric cars and an industry downturn.
Manager Magazin said around 30,000 Mercedes-Benz cars with faulty vehicle electronics were produced at its plant in Tuscaloosa, Alabama, requiring expensive reworking which was causing production delays.
Those delays had led to a revenue shortfall of around 2 billion euros and could depress first quarter earnings by up to half a billion euros, the report said.
Daimler is due to release first quarter earnings on April 26.
Manager Magazin also said Daimler plans to become a carbon neutral company by 2040, ensuring that all new cars, production methods and suppliers work in ways which do not produce carbon dioxide emissions.
Separately, Kaellenius will not renew common projects with French carmaker Renault and Nissan, letting an alliance between the carmakers lapse, the magazine said. The Infiniti Q30 and QX30 are built on a Mercedes platform. Mercedes plans to explore more collaboration with Geely, which is Daimler's biggest shareholder with a 9.7 percent stake.
https://www.financialexpress.com/au...on-euros-in-cost-savings-at-mercedes/1552980/
- Daimler to seek 6 billion euros in cost savings at Mercedes
Manager Magazin said around 30,000 Mercedes-Benz cars with faulty vehicle electronics were produced at its plant in Tuscaloosa, Alabama, requiring expensive reworking which was causing production delays.
By: Reuters | Published: April 19, 2019 10:58 AM
0
Shares
Daimler is looking to make 6 billion euros ($6.75 billion) in cost savings and efficiency gains by 2021 at Mercedes-Benz passenger cars and a further 2 billion euros at its Daimler Trucks division, Manager Magazin said on Thursday.
Around 10,000 jobs will be cut at Daimler, the business-focused magazine said, without citing sources. Daimler declined to comment on the cost savings figure and on Manager Magazin's report but has previously ruled out forced redundancies until the end of 2020.
The magazine said the savings are being sought by Daimler's Ola Kaellenius, who will become Chief Executive in May. Daimler said in February it would pursue cost-saving measures after fourth-quarter operating profit plunged 22 per cent, hit by trade wars, rising costs for developing electric cars and an industry downturn. Manager Magazin said around 30,000 Mercedes-Benz cars with faulty vehicle electronics were produced at its plant in Tuscaloosa, Alabama, requiring expensive reworking which was causing production delays.
Those delays had led to a revenue shortfall of around 2 billion euros and could depress first-quarter earnings by up to half a billion euros, the report said. Daimler is due to release first-quarter earnings on April 26.
Manager Magazin also said Daimler plans to become a carbon neutral company by 2040, ensuring that all new cars, production methods and suppliers work in ways which do not produce carbon dioxide emissions. Separately, Kaellenius will not renew common projects with French carmaker Renault and Nissan, letting an alliance between the carmakers' lapse, the magazine said.
Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.
https://www.dw.com/en/mercedes-announces-massive-job-cuts/a-1724298
Mercedes Announces Massive Job Cuts
DaimlerChrysler announced that one out of nine jobs would be cut from the workforce at its German Mercedes unit in an effort to reduce costs.
Workers in Germany aren't being handled with kid gloves
DaimlerChrysler said in a statement on Wednesday evening that it would slash 8,500 jobs at its top-of-the-line car maker Mercedes within the next year.
The announcment confirms speculation that had been circling over the past week that Mercedes planned to reduce its German workforce of 94,000 in order to cut costs.
Mercedes assembly line in Tuscaloosa, AL, USA
Dieter Zetsche, who took control of Mercedes this month and is set to become chief executive of DaimlerChrysler at the beginning of 2006, outlined the plan to German-US auto maker's supervisory board during a meeting in the U.S. on Wednesday.
The stock market reacted positively to the speculation on Wednesday, with DaimlerChrysler shares jumping up by nearly 3 percent to 45.21 euros (US$54.27) in morning trading at the Frankfurt Stock Exchange.
Cuts via attrition
Jobs would be cut via so-called attrition or "natural wastage," where people leaving the company would not be replaced, since the German Mercedes employees are protected by an agreement of no compulsory redundancies until 2012.
The redundancy payments would knock around 100 million euros off of Mercedes' earnings, according to reports.
Mercedes plant in Bremen
The job loss would be a hard blow for company morale. It was only two summers ago that weeks of negotiation led to wage accords, and the agreement that German jobs would be secured in the long term. The company appears to be backing away from the agreement, however.
Past agreements
In July 2004, Daimler workers in Germany agreed to forego wage increases in exchange for securing 6000 production jobs in the Mercedes plant at Sindelfingen. In turn, DaimlerChrysler promised to halt layoffs until 2012.
DaimlerChrysler had threatened to produce its new C-Class car in Bremen and South Africa if workers didn't agree to cost 500 million euros per year in cost-cutting measures. At the time, the IG Metall trade union had praised the compromise.
