TU-TESL

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Daimler will cut 1100 leadership positions globally, accounting for about 10% of its management, according to a German newspaper, Sueddeutsche Zeitung, citing a communication released by the Daimler Labor Committee. Ola kaellenius, Daimler's new chief executive, will unveil the latest strategy on November 14, which may include cost cutting measures, the report said. A Daimler Labor Council spokesman declined to comment on the report. Daimler said it was conducting a cost analysis to enable the carmaker to remain competitive in the future. Details will be disclosed between the Daimler capital markets dates. "We are in constructive negotiations with staff representatives and cannot comment on the speculation," Daimler said This year, Daimler's performance has been pretty ugly, which is pushing it to continue to cut costs. In the past third quarter, despite a slight increase in Daimler's operating profit, EBIT increased by 8% to 2.69 billion euros, up from 2.49 billion euros in the same period last year, mainly driven by 8% growth in luxury car sales and steady cash flow. But Daimler said it would reassess costs after its profit margin fell to 6% from 6.3% a year earlier. Before that, Mercedes Benz GLS production problems, installed emissions cheating software, was investigated and fined by the prosecution. At that time, at the financial analysis meeting, Kang LinSong said: "in order to control the transformation in the next few years, we need to increase efforts: we must significantly reduce costs and continue to enhance cash flow." But he did not elaborate on a specific cost cutting plan. Daimler reiterated that it expects the group's EBIT to be significantly lower than last year. In addition, Daimler also said that the current legal procedures related to diesel emissions may lead to additional expenses, which may hit the profits of Mercedes Benz cars and trucks. According to Daimler group's second quarter financial report, Mercedes Benz diesel emissions fraud caused Daimler to lose 1.07 billion euros. At the same time, Daimler increased the provision for legal and government litigation costs for diesel vehicles by 1.6 billion euros. In the second quarter, Daimler's operating revenue was 42.65 billion euros, up 5% year-on-year, with an EBIT loss of 1.56 billion euros and a profit of 2.6 billion euros for the same period last year. It was the first time Daimler group had a quarterly loss nine years later. Mercedes Benz's return on car sales fell from 8.4% in the same period in 2018 to - 3% this year. According to the company's internal forecast, the profit margin of Mercedes Benz's auto sector is likely to drop to 3% this year. Harald Wilhelm, Daimler's chief financial officer, said investors should not expect a 180 degree turnaround in the company's strategy and cost cutting report to be released on November 14. In May this year, kanglinsong said that in order to improve the profitability, by 2025, Daimler will substantially reduce the R & D cost of new Mercedes Benz, and will strengthen the alliance with competitors. In April, German manager magazin said without disclosing the source of information that the new CEO, conlinson, plans to cut 10000 jobs, which will streamline the structure of Daimler and Mercedes Benz, and seek to save 6 billion euros (US $6.75 billion) in costs by 2021 to improve efficiency. "Kanglinsong will push ahead with layoffs and may cut 10000 of its current 298700 employees in the medium term," said manager magazine. At the same time, layoffs are likely to be "carried out in a socially acceptable way, and not in a big way". In the short term, Daimler will no longer fill vacant positions. The above report also points out that the cost saving plans of Daimler and conlinson will take effect in 2021, which will be a huge and rapid change.