BUSINESS | Daimler To Cut Fixed Costs By More Than 20% In Luxury Drive

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.

TRAVEL ALERT | Saudi Arabia To Resume Flights For 33 Destinations In November

Saudi Arabia’s national carrier Saudi announced it will resume flights to 33 destinations in November. Destinations include major international capitals across Europe, Asia and Africa. Regional destinations that include Dubai and Beirut also resume next month. Saudia travellers who are going to U.S. will only be able to fly to Washington. The airlines said flights … Continue reading TRAVEL ALERT | Saudi Arabia To Resume Flights For 33 Destinations In November

EMPOWERMENT OF WOMEN | Saudi Arabia To Establish Future Women’s Civil Association

RIYADH | SAUDI ARABI A- – Saudi Arabia is to establish a Future Women’s Civil Association to help develop the work of the volunteer and nonprofit sector in the Kingdom. Saudi Minister of Human Resources and Social Development Ahmed Al-Rajhi said his decision is to set up the civil society was in line with the … Continue reading EMPOWERMENT OF WOMEN | Saudi Arabia To Establish Future Women’s Civil Association

King Salman: We Embarked On Unprecedented Reform Journey To Empower Women

The Custodian of the Two Holy Mosques, King Salman bin Abdulaziz, said that the Kingdom has embarked on an unprecedented reform journey to empower women and support their participation in national development. He added that the country was proud of the distinguished work of the Women 20 group, within the framework of the G20, which … Continue reading King Salman: We Embarked On Unprecedented Reform Journey To Empower Women

BREAKING NEWS | Mohammed Bin Salman Calls On ‘Dreamers’ To Join Saudi Arabia In Building ‘Economies Of Knowledge’

RIYADH | SAUDI ARABIA – Saudi Crown Prince Mohammed bin Salman, Deputy Prime Minister and Minister of Defense, called on Wednesday ‘all dreamers to join Saudi Arabia in building economies of knowledge’. ‘At this summit, we look forward to unveiling a number of important initiatives with our global partners to help speed up the adoption … Continue reading BREAKING NEWS | Mohammed Bin Salman Calls On ‘Dreamers’ To Join Saudi Arabia In Building ‘Economies Of Knowledge’

BUSINESS | Hermes Launches Its First-Ever Digital Flagship Store In Saudi Arabia

RIYADH | SAUDI ARABIA – From its line of stylish hijabs to pieces that work perfectly for customers into the more modest of fashion statements, Hermes has been focusing much more on catering to the region’s contemporary woman. Now, the luxury brand is taking a key step further by launching its first flagship digital store … Continue reading BUSINESS | Hermes Launches Its First-Ever Digital Flagship Store In Saudi Arabia

TRAVEL | Abu Dhabi’s Qasr Al Watan Open For Visitors After Months Of Closure

Abu Dhabi’s presidential palace Qasr Al Watan announced on Monday its reopening for visitors with enhanced safety measures to combat the spread of coronavirus. According to the site’s website, the reopening of the majestic palace comes hand in hand with a set of new precautionary health measures. First, the site will be subject to an … Continue reading TRAVEL | Abu Dhabi’s Qasr Al Watan Open For Visitors After Months Of Closure

BUSINESS | Emirates Honoured With Best Airline Worldwide Award At Business Traveller Middle East Awards 2020

Emirates has earned top spot at the Business Traveller Middle East Awards 2020, sweeping four awards including the coveted ‘Best Airlmine Worldwide’ award for the seventh consecutive year. The airline also took home  ‘Airline with the Best First Class’, ‘Airline with Best Cabin Crew’ and ‘Best Airport Lounge in the Middle East’. The winds underscore … Continue reading BUSINESS | Emirates Honoured With Best Airline Worldwide Award At Business Traveller Middle East Awards 2020

BREAKING NEWS | Under Auspices Of Crown Prince, Inaugural Global Artificial Intelligence Summit Kicks Off In Riyadh

Saudi Crown Prince Mohammed bin Salman, Deputy Prime Minister and Minister of Defense, sponsored in Riyadh on Wednesday the launch of the inaugural Global Artificial Intelligence Summit (GAIS). The two-day ‘AI for the Good of Humanity’ is organized by the Saudi Data and AI Authority (SDAIA) and G20 Saudi Secretariat as part of The International … Continue reading BREAKING NEWS | Under Auspices Of Crown Prince, Inaugural Global Artificial Intelligence Summit Kicks Off In Riyadh

NEWS ALERT | Saudi Arabia First In Arab World For Issuing Scientific Papers On Virus

NEOM – Saudi Arabia was ranked first in the Arab World for issuing scientific papers on the coronavirus, the government heard on Tuesday. King Salman chaired a virtual session of the cabinet which reviewed various aspects related to the fight against the spread of the virus. The Kingdom ranked 25th globally and 2nd in the … Continue reading NEWS ALERT | Saudi Arabia First In Arab World For Issuing Scientific Papers On Virus

HEALTH | Spain Considers Curfews To Fight New Coronavirus Wave

MADRID – The Spanish government is considering new restrictions, including possible curfew, in hard-hit regions like Madrid to tackle a new wave of coronavirus contagion, Health Minister Salvador Illa said on Tuesday. The country, which has Western Europe’s highest case load, is likely to surpass one million infections this week and several regions have toughened … Continue reading HEALTH | Spain Considers Curfews To Fight New Coronavirus Wave

NEWS ALERT | Trump: U.S. to remove Sudan From State Terrorism Sponsor List After Payment To Victims

WASHINGTON – President Donald Trump announced on Monday the United States would remove Sudan from its list of state sponsor of terrorism as soon as Khartoum sets aside the $335 million it has agreed to pay to American victims of militant attacks and their families. The deal could also set in motion steps by Sudan … Continue reading NEWS ALERT | Trump: U.S. to remove Sudan From State Terrorism Sponsor List After Payment To Victims

WORLD NEWS | Trump Calls Fauci A ‘Disaster’ And Seek To Reassure His Team He Can Win

WASHINGTON – President Donald Trump called coronavirus expert Anthony Fauci a ‘disaster’ on Monday, airing his frustration with the scientist during a call meant to reassure campaign staff he has a path to victory on Nov.3 despite trailing in opinion polls. Trump and Fauci a member of his coronavirus task force, have been at odds … Continue reading WORLD NEWS | Trump Calls Fauci A ‘Disaster’ And Seek To Reassure His Team He Can Win

BUSINESS | Former ABC executive to become chairwoman of Warner Bross. TV

Former ABC network executive Channing Dungey will take over as chairwoman of Water Bros. television Group Peter Roth, who will step down next year. Dungey, who is currently vice president of Original Series at Netflix Inc, has previously worked at Walt Disney Co’s ABC network for over 14 years, according to her LinkedIn. In 2016, … Continue reading BUSINESS | Former ABC executive to become chairwoman of Warner Bross. TV

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