Daimler cannot slow down its efforts to cut costs next year despite an expected improvement in markets, its chief executive has said.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
“We cannot afford to achieve less on the cost side as in 2009 due to the conditions,” Dieter Zetsche told Die Welt in a report scheduled for Thursday publication, referring to the lack of a considerable recovery in demand.
Daimler aims to save EUR4bn (US$5.63bn) for this year, with half coming from reduced labour costs, but has warned that the amount would not be a permanent reduction in its cost base, Reuters noted.
Zetsche also said he was not worried about a possible hostile takeover, thanks to Gulf investors Kuwait and Abu Dhabi that together hold about 16% of Daimler shares.
“Theoretically the possibility is naturally there always, but in reality the risk is close to zero,” he added.
Daimler recently took a 10% stake in electric sportscar vehicle maker and EV partner Tesla.
