FRANKFURT – Daimler said on Tuesday it will cut fixed costs, capex and research and development expenditure by more than 20% by 2025 as part of a strategy overhaul to reposition Mercedes-Benz as a more high-end luxury brand.
Chief Executive Ola Kaellenius told investors that compact vehicles like the Mercedes-Benz A and B-Class vehicles had helped rejuvenate that brand, but would not be the main priority for devoting resources in future.
‘This is not where the main thrust should go, we should not become a competitor of the volume makers’, Kalleniuns said during a virtual presentation.
Mercedes – Benz plans to achieve a double – digit return on sales margin by doubling sales of Maybach branded cars, and ramping up sales of AMG and G-Wagon derivatives while slashing costs and increasing economies of scale on new platforms.
It would aim to cut fixed costs by 20% by 2025 from 2019 levels and place more emphasis on margins rather than volumes.
‘We will pursue higher portfolio profitability, we will steer by contribution margin, we will move (the) existing portfolio margin up and move (the) existing portfolio margin up and move capital to luxury and high – end products’, Chief Financial Officer Harald Wilhem said during the presentation.
This will allow Mercedes-Benz to achieve a return on sales within a mind to high single – digit range even when markets are weak, by 2025, the carmaker said.
Cost cutting and efficiency gain will help lower the company’s break – even point. Manual gearboxes will be dropped as an option, and the variety of combustion engines on offer will be cut by 70% by 2030.
Luxury cars will also take less time to build. The new Mercedes S-Class takes 25% less time to assemble compared to the predecessor generation vehicle, Daimler said.
Margins will improve as purchasing costs come down. For its electric cars, Daimler is seeking to cut the cost of battery systems to below 100 euros per kilowatt hours by mid decade. The Mercedes-Benz EQS will be launched next year, Mercedes said.
Daimler aims to release a new softwear vehicle operating system, known as MB.OS, by 2024 and to use over-the-air updated to generate an operating profit of 1 billion euros ($1.18 billion) by 2025 from digital services which include parking and charging transactions.
Daimler has already cut costs as the coronavirus pandemic led to a slump in sales, pushing the German company to operating losses in the first and second quarters.
To counter losses, Mercedes-Benz stopped building sedans in the United States to focus on more profitable SUVs, combined its fuel cell development with Volvo Trucks, and halted an automated development alliance with BMW.
Two Gulf Aircraft Involved in ‘Minor Incident’ At Dubai Airport
The tail of a Gulf Air passenger aircraft was hit by another plane at Dubai International Airport on Thursday, Bahrain’s state news agency BNA reported, in what a Dubai Airports spokesperson described as a minor incident. UAE General Civil Aviation Authority said on Thursday in a statement, ‘This morning a minor collision occured between two … More Two Gulf Aircraft Involved in ‘Minor Incident’ At Dubai Airport
France’s Macron To Hold Cabinet Meeting On Pegasus Spyware Case
French President Emmanuel Macron will hold a special cabinet meeting on Thursday morning to discuss investigations into the Pegasus spyware case, gorvernment spokesperson Gabriel Attal said. Attal said progress was being made in the investigations after Amnesty International and a group of international media organisations said spyware made and licensed by a company based in … More France’s Macron To Hold Cabinet Meeting On Pegasus Spyware Case
The Kaaba Receives A New Kiswa To Commemorate Eid al – Adha
Saudi officials have replaced the Kiswa (the cloth cover) of the Kaabato commemorate the Day of the Arafat and the start of Eid al – Adha, according to Saudi Press Agency (SPA) on Monday. The process of changing the Kiswa occurs annually on the seconf day of Hajj under the supervision of the President of … More The Kaaba Receives A New Kiswa To Commemorate Eid al – Adha
Saudi Arabia To Require All Citizens To Be Fully Vaccinated Before Traveling By Aug 9
All Saudi Arabian citizens will be required to have had two COVID-19 vaccine doses before traveling outside the Kingdom from August 9, the Kingdom’s interior ministry announced on Monday. The new requirement will not be applied to children under the age of 12 provided that their travel insurance policy covers expenses relating to COVID-19 and … More Saudi Arabia To Require All Citizens To Be Fully Vaccinated Before Traveling By Aug 9
Saudi Crown Prince Allocates $1 Million As Marriage Grants
Saudi Arabia’s Crown Prince Mohammed bin Salman has directed SR 3.74 million ($997.080) to be distributed as marriage grants to 200 young men and women across the Kingdom. The money comes out of his ‘keennes to support orphans with special circumstances and people with disabilities, as they are among the priority groups of the ‘SNAD … More Saudi Crown Prince Allocates $1 Million As Marriage Grants
Key OPEC+ Producers Reach Preliminary Output Deal
Key producers of OPEC+ countries have reached a preliminary deal on gradualy oil output until December and extension of their pact until end of 2022, an OPEC+ source told Reuters on Sunday. OPEC+ hold an online meeting later on Sunday.
Saudi Commentators Go Public In Criticising UAE Role In Yemen
Pro – government commentators in Saudi Arabia are public criticising the United Arab Emirates’ role in Yemen, a rare move that reflects political and economic tensions between the two Gulf allies that also led to an open standoff over the oil policy. Saudi Arabia is trying to contain a power struggle in southern Yemen between … More Saudi Commentators Go Public In Criticising UAE Role In Yemen
Saudi Arabia’s King Salman Directs 1 Million COVID – 19 Vaccine Doses For Tunisia
Saudi Arabia’s King Salman has issued directives to provide Tunisia with one million doses of the coronavirus vaccine and aid upon the request from Tunisian President Kais Saied, according to an announcement issued on Monday. The King directed the King Salman Center for Relief and Humanitarian Action (KSRelief) to urgently support Tunisia with medical and … More Saudi Arabia’s King Salman Directs 1 Million COVID – 19 Vaccine Doses For Tunisia
Saudi Crown Prince, Tunisian President Discuss Boosting Relations
Saudi Crown Prince Mohammed bin Salman, Deputy Prime Minister and Minister of Defense, received on Friday a telephone call from Tunisian President Kais Saied. Talks focused bilateral relations and ways of bolstering them in all fields. They also discussed issues of joint interest.
Sultan Of Oman To Visit Saudi Arabia On Sunday
Sultan Haitham bin Tariq of the Sultanate of Oman will make a two – day official visit to Saudi Arabia on Sunday after he received an invitation from Custodian of the Two Holy Mosques King Salman bin Abdulaziz, the Saudi Press Agency (SPA) reported. The visit comes within the framework of strengthening the historical and … More Sultan Of Oman To Visit Saudi Arabia On Sunday
238 Quarantine Violators Arrested In Saudi Arabia’s Eastern Province
Authorities in Saudi Arabia’s Eastern Province have arrested 238 people for breaching isolation and quarantine rules after contracting the coronavirus disease. The region’s police spokesman, Lt.Col. Mohammed bin Shar Al – Shehri, said security organizations monitoring preventive measures had also held other people for violating mandatory quarantine imposed on them when entering the Kingdom. Preliminary … More 238 Quarantine Violators Arrested In Saudi Arabia’s Eastern Province
Saudi Arabia Launches First – Ever Space Science Scholarship Program To 30 Universities
Saudi Arabia has launched its first – ever scholarship program to sent students who want to study space sciences to renowned universities around the world, the Kingdom’s Space Commission announced on Wednesday. Saudi Arabian male and female students will have the opportunity to study space science is one of the top 30 global universities and … More Saudi Arabia Launches First – Ever Space Science Scholarship Program To 30 Universities
Airline Body IATA To Open Saudi Office But Denies It Will Be Regional HQ
Saudi Arabia said on Wednesday that global airlines industry body IATA had agreed to open a regional headquarters in Riyadh but the industry’s main trade association denied it woul be a regional base in the latest evidence of sensitivities over the status of foreign business representation in the kingdom. The General Authority of Civil Aviation … More Airline Body IATA To Open Saudi Office But Denies It Will Be Regional HQ
Saudi Non – Oil Sector Employment Rises Amid Steady Growth
Saudi Arabia’s non – oil private sector continued to expand in June at a fast rate and job creation rose to a 19 – month high, a survey showed, as the largest Arab economy recovers from the coronavirus crisis. The seasonally adjusted IHS Markit Saudi Arabia Purchasing Manager’s Index (PMI) stood at 56.4 in June, … More Saudi Non – Oil Sector Employment Rises Amid Steady Growth
UAE’s Abu Dhabi Updates COVID-19 Travel Procedures
Citizens and residentes of Abu Dhabi arriving in the emirate from abroad will have to take two coronavirus PCR tests, on arrival and on day 11, and quarantine for 12 days, the Emergency, Crisis and Disasters Committee said on Sunday. Arrivals from green list destinations will only take PCR tests on arrival and on days … More UAE’s Abu Dhabi Updates COVID-19 Travel Procedures
Loading…
Something went wrong. Please refresh the page and/or try again.
