Mercedes-Benz aims is targeting billions of euros in cost reductions annually by cutting the number of vehicle platforms and using more common parts across segments.

Research and development chief Thomas Weber told German industry magazine Automobilewoche: “We expect a reduction in costs of more than EUR1.5bn (US$1.94bn) annually. It’s our target to achieve the full savings effect in 2014 ideally, or 2015 at the latest.”

He added: “Instead of designing every new car from scratch, we will focus on three architectures: one for rear-wheel drive cars, one for SUVs and one for front-wheel drive compacts.”

The move follows an industry trend to more modular architectures that can be used across segments to achieve synergies.

Weber added that he wanted to “thin out” the R&D budget at the Daimler group to 4% of sales, down from almost 5% in 2010, assuming a consolidated revenue of EUR100bn (US$130bn).

GlobalData Strategic Intelligence

US Tariffs are shifting - will you react or anticipate?

Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.

By GlobalData

Just Auto Excellence Awards - Have you nominated?

Nominations are now open for the prestigious Just Auto Excellence Awards - one of the industry's most recognised programmes celebrating innovation, leadership, and impact. This is your chance to showcase your achievements, highlight industry advancements, and gain global recognition. Don't miss the opportunity to be honoured among the best - submit your nomination today!

Nominate Now