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Oluwafemi Awodele
3 weeks ago
Overview
Mercedes-Benz To Cut Multi-Billion Euros In Costs Amid Challenges
Mercedes-Benz, German automaker has unveiled its intention to cut multi-billion euros in costs in response to a deteriorating business environment, a report by dpa-AFX posted on MarketScreener has said.
The report quoted a company representative as saying that the auto company in the coming years would reduce its costs by several billion euros a year.
However, specific cost-cutting measures remain undisclosed, and the potential impact on jobs is currently unclear.
The announcement came as the German automotive industry faces challenges, including the transition to electric vehicles and increased competition in the Chinese market.
Mercedes-Benz justified the cost-saving measures by citing the volatile global economic situation.
“The economic situation remains extremely volatile worldwide. Only by sustainably increasing efficiency will we remain financially strong and able to act,” the representative said.
Mercedes-Benz has emphasised the importance of maintaining financial strength through significant savings, including reductions in fixed costs.
“We are continuing along this path calmly but extremely consistently,” the spokesperson added.