Although German workers will be protected until 2029, elsewhere thousands of jobs are to be cut by the end of 2022, to save Eur 1.4 billion.
In mid-November, two weeks after separating its truck and bus division from its car and van one, the company announced a restructuring plan. At the time, Ola Källenius, chairman of the board of management of Daimler AG and Mercedes-Benz AG, said: “We are positioning the company for the transformation with a clear strategy for the future. The expenditure needed to achieve the CO2 targets require comprehensive measures to increase efficiency in all areas of our company. This also includes streamlining our processes and structures.
The company also said: “In the Daimler Trucks & Buses division, investment and cost pressure will continue in the coming years. Investment in new technologies is needed, also in the CO2 neutrality of the fleet through electric drive and in the automation and connectivity of trucks and buses.
“In terms of market share and profitability, the Daimler Buses and Daimler Trucks North America business units, which together account for 55% of revenue, are among the best in the industry. However, the profitability of Mercedes-Benz Trucks in Europe and Latin America– together accounting for 30% of global revenue – is currently unsatisfactory. Mercedes-Benz Trucks Europe has therefore started to reduce variable costs by €250 million as well as personnel costs by €300 million by the end of 2022. In addition, the sales organization is to be restructured.”
The company forecasts a truck market decrease in the short to medium term in Europe and the US until 2021, although bus demand is expected to rise.
It also said: “The market for heavy trucks, on which Daimler Trucks is increasingly focusing, offers good global growth and earnings prospects. In the long term, the truck manufacturer sees considerable business potential in highly automated trucks that travel between logistics hubs on highways. On this basis, the division Daimler Trucks & Buses anticipates a return on sales from operating activities of at least 5% in 2020 and at least 7% in 2022.”