Daimler will make redundancies globally / The car group also has two production units in Romania

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The Daimler AG auto group as the global dismissal of 1,100 command staff, or about 10% of its management, announced the German publication Sueddeutsche Zeitung, citing a newsletter presented by the union, Deutsche Welle and Reuters reported.

A spokesman for the Daimler employees' union referred to an internal letter issued by the head of the organization, Michael Brecht.

"The union was recently informed by management about the financial situation and that of the company's employees. The talks have started, we still do not have a result, ”he told Brecht employees.

The Daimler union excludes compulsory redundancies by 2030, and voluntary departures are possible, but only if both parties agree, Brecht said.

The new CEO Ola Kaellenius will present on November 14 an update of the strategy, which will also include cost reduction measures.

Daimler representatives said the company is working on a cost analysis so that it remains competitive.

"We are in constructive negotiations with the employees' representatives and we cannot comment on the speculations," said a Daimler spokesman.

Daimler's operating profit increased slightly in the third quarter of this year, due to an 8% increase in sales of Mercedes-Benz cars, but the German group announced cost reductions and warned that it could increase provisions related to recalling vehicles. diesel.

Between July and September 2019, profit before taxes and interest (EBIT) rose 8%, to 2.69 billion euros, from 2.49 billion euros a year ago. Also, sales increased by 8%, to 43.3 billion euros.

The company announced it would revise costs after the profit margin at Mercedes-Benz Cars fell to 6%, from 6.3% a year ago, due to production problems with the Mercedes GLS and the equipment of cars with expensive anti-emission filters.

"In order to complete the transformation plan in the coming years, it is necessary to increase our efforts considerably: we must significantly reduce our costs and significantly strengthen our cash flow," said CEO Ola Kaellenius, without giving further details.

Daimler owns the Mercedes-Benz luxury division and the Smart brand.

In Romania, Daimler has two production units, in Cugir and Sebeş.

Source: Agerpres

Photo source: Mercedes



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