Mercedes-Benz Set To Cut Cost By Several Billions of Euros Per Year

Mercedes-Benz is implementing significant cost reductions in response to declining business performance.

“In the coming years, we will reduce our costs by several billion euros per year,” the company said, but they did not want to provide additional details. Whether this means large layoffs is unknown.

The German automotive industry has been in quite a bit of trouble lately. The transition to electric cars is not going as expected, and the competition in the Chinese market has also intensified.

Volkswagen, otherwise the largest car company in Europe, has already threatened to close several factories in Germany, and in collective negotiations, it is allegedly insisting on a general reduction in wages.

The tightening of the situation in the industry is also felt by Mercedes-Benz, which is therefore forced to adjust operating costs, the spokeswoman of the company told the German agency dpa. “The economic situation in the world remains extremely uncertain. We will remain financially strong and able to act only with a corresponding increase in efficiency,” she added.

According to her, significant savings will be required, which will include fixed costs. Mercedes-Benz is on the right path, it will continue on that path calmly, but very consistently, she concluded.

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