The Mercedes-Benz group intends to reduce its costs by several billion euros a year in response to the difficulties of the global automobile market, the German manufacturer said on Thursday without detailing the planned measures.
“We will only be financially strong and able to act if we manage to sustainably increase our efficiency. That is why, in the coming years, we will reduce our costs by several billion euros per year,” the group indicates in a press release. confirming press information.
The premium automaker did not specify how it planned to achieve these savings and whether employment would be affected. An enterprise agreement guarantees protection against layoffs until the end of 2029 and covers the majority of the company’s workforce in Germany.
Automobile market slowdown
The global auto market is slowing as consumers are reluctant to invest in new electric models and traditional manufacturers face increasing competition from new Chinese players.
The financial results of the world’s leading manufacturers have deteriorated in 2024 and Germany, where the automobile is a pillar of the economy, is especially affected.
Mercedes-Benz announced in October a halving of its net profit in the third quarter, weighed down by the drop in its sales, particularly of its luxury models and in the Chinese market.
Volkswagen, the largest German and European manufacturer, is also preparing a multimillion-dollar savings plan to improve its competitiveness. The American Ford announced this week 4,000 new job cuts in Europe, mainly affecting Germany.
Source: BFM TV
