Mercedes put the brakes on: It will save billions of euros!

German automotive giant Mercedes-Benz is preparing to launch a comprehensive savings plan to reduce its costs due to global economic uncertainties and problems in the automotive industry. According to the German newspaper Handelsblatt, the company plans to save billions of euros every year for the next few years.

Mercedes is going to reduce costs: It will save billions of euros annually

Mercedes spokesperson confirmed the savings process and said, “We will reduce our costs by billions of euros every year in the coming years.” He made a statement. However, the details of the plan have not been announced yet. Uncertainty still continues, especially in which areas the cuts will be made or whether this process will include layoffs.

Meanwhile, Mercedes does not plan to make any changes regarding the occupational safety of its employees for now. The company stated that it will preserve the union agreement called “Zusi 2030”, which is valid until 2029. It should be noted that the agreement provides protection that prevents layoffs and factory closures. So, the main goal of the company is to remain financially strong and resilient against global economic uncertainties.

In fact, the third quarter reports of 2024 more clearly revealed Mercedes’ need for cost reduction. The company’s net profit decreased by more than half compared to the same period of the previous year, falling to 1.72 billion euros. Additionally, total revenue decreased by 6.7% to 34.5 billion euros. It is stated that one of the biggest reasons for these losses is the weakness in the Chinese market.

Regarding the savings plan, a Mercedes spokesperson said: “The global economic situation is extremely volatile. “Only with sustained productivity growth can we remain financially strong and maintain our mobility.” he said. So, what do you think about this? You can write your opinions in the comments section below.