Report: Daimler Targets $9 Billion in Cost Cuts by 2021
Daimler AG aims to achieve €8 billion ($9 billion) in combined cost savings from its passenger car ($6.75 billion) and commercial truck ($2.25 billion) operations by 2021, sources tell Manager Magazin.
The initiative is being pushed by incoming CEO Ola Kallenius, according to the report. Kallenius, who currently heads research and product development for Mercedes-Benz, is due to succeed Dieter Zetsche next month.
Daimler declined to comment. But the carmaker pledged to reduce costs after its net profit fell 28% in 2018. The profit decline was attributed to global trade issues, the European Union’s new emission test protocol and high development costs for new technologies.
In addition, production problems at the company’s Mercedes-Benz plant in Tuscaloosa, Ala., are expected to negatively impact first quarter results, which will be announced next week. The facility produced about 30,000 vehicles with faulty electronics systems that had to be extensively reworked, according to Manager Magazin.
The German magazine also says Kaellenius has decided not to renew Daimler’s technical relationship with the Renault-Nissan alliance. This would contradict reports in December that Mitsubishi, which joined the Renault-Nissan alliance in 2016, also would cooperate with Daimler. Under the Renault-Nissan/Daimler partnership, which was formed in 2010, the companies have shared select platforms and engines.
Dan Nicholson is vice president of General Motors Global Propulsion Systems, the organization that had been “GM Powertrain” for 24 years.
Once the playground of exotic car makers, the definition of a niche vehicle has expanded to include image vehicles for mainstream OEMs, and specialist models produced on high-volume platforms.
According to Sandor Piszar, Chevrolet truck marketing director, “We engineer and build our trucks with customers’ expectations in mind.”