DaimlerChrysler AG on Wednesday denied a report that it was aiming to cut costs by €1.5 billion euros ($US1.6 billion) this year and may strengthen development and marketing ties between its units, Reuters said.
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According to the news agency, Germany’s Focus Money magazine quoted an unnamed DaimlerChrysler executive as saying all areas of the business would be ordered significantly to cut costs in the second half of the year, with the aim of saving €1.5 billion euros in total.
“There is no such programme,” a DaimlerChrysler spokeswoman told Reuters, which added that the report quoted chief financial officer Manfred Gentz as saying increasing efficiency was an ongoing aim.
“We are always trying to improve efficiency in all business areas,” Gentz was reportedly quoted as saying in an advance copy of the report to be published on Thursday.
DC US arm Chrysler, whose losses dragged the group’s core profits down by nearly two-thirds in the second quarter, has already said it aims to boost its cost savings by $1 billion this year, Reuters noted.
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By GlobalDataThe news agency said Gentz was also quoted as repeating that the group’s operating profit next year would be better than that in 2003, when it is aiming for a profit of about €5 billion.
