FRANKFURT — Daimler will cease constructing Mercedes-Benz sedans in the US and Mexico because it seeks deeper cuts after posting a smaller-than-expected quarterly loss.
The German automaker will halt output of its Mercedes-Benz C-Class sedan in Tuscaloosa, Alabama, leaving the plant producing sport utility autos (SUVs) solely, it stated.
It can additionally cease producing of a variant of compact Mercedes-Benz A-Class in Aguascalientes, Mexico, to as a substitute deal with the GLB, a more moderen, higher-margin SUV mannequin.
It introduced the modifications alongside a second-quarter working lack of 1.68 billion euros (£1.52 billion) on Thursday forward of the scheduled launch date of July 23.
“Daimler pre-released better-than-consensus second-quarter numbers,” Jefferies analyst Philippe Houchois stated in a be aware.
Daimler shares had been up 4.2% on Friday.
Harm by a hunch in demand amid dealership closures and lockdowns, its Mercedes-Benz Automobiles & Vans unit posted an working lack of 1.13 billion euros.
“Our systematic efforts to decrease the breakeven of the corporate by decreasing prices and adjusting capability might want to proceed,” CEO Ola Kaellenius stated.
The corporate earlier introduced plans to promote its manufacturing facility in Hambach, France.
Daimler stated it spent 129 million euros on buyouts and early retirement. It additionally introduced a 105 million euro valuation adjustment on YOUR NOW, its car-sharing three way partnership.
Daimler stated it had incurred 687 million euros in restructuring prices to retool its world manufacturing community of factories producing Mercedes-Benz automobiles.
The corporate is searching for 2 billion euros in annual financial savings by means of workers cuts, which is equal to greater than 20,000 jobs, Germany’s Handelsblatt newspaper reported on Friday.
Daimler had beforehand stated it’s searching for to save lots of greater than 1.Four billion euros from annual workers prices.
Daimler is reviewing whether or not to promote its plant in Iracemapolis, Brazil, Handelsblatt stated, citing firm sources, and added that an extension of its manufacturing facility in Kekskemet, Hungary, was unlikely to see the sunshine of day.
The carmaker can also be reviewing its portfolio of area of interest automobiles, just like the coupe and convertible variants of its C-Class and E-Class, in addition to the compact B-Class, Handelsblatt reported.
Daimler declined to touch upon the main points of potential cuts.