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.”

Discover B2B Marketing That Performs

Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.

Find out more

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).

Just Auto Excellence Awards - Nominations Closed

Nominations are now closed for the Just Auto Technology Excellence Awards. A big thanks to all the organisations that entered – your response has been outstanding, showcasing exceptional innovation, leadership, and impact.

Excellence in Action
Continental has secured the Window Displays Innovation Award in the 2025 Just Auto Excellence Awards for its Window Projection solution, transforming side windows into dynamic, data-rich canvases. Discover how this compact projection technology and intelligent software are reshaping in-car UX and opening fresh revenue streams for OEMs and mobility providers.

Discover the Impact