Mercedes-Benz Cars to slash 1 billion euros in costs by 2022

Mercedes-Benz Cars to slash 1 billion euros in costs by 2022

Daimler shares fell sharply on Thursday after the German carmaker said tougher emissions rules will hit earnings in 2020 and 2021 forcing it to seek more than 1 billion euros in personnel cuts at Mercedes-Benz Cars by end of 2022.

FILE PHOTO: A Mercedes-Benz Concept IAA car is displayed prior to the Daimler annual shareholder me
FILE PHOTO: A Mercedes-Benz Concept IAA car is displayed prior to the Daimler annual shareholder meeting in Berlin, Germany, Apr 6, 2016. (Photo: REUTERS/Hannibal Hanschke)

FRANKFURT: Daimler shares fell sharply on Thursday after the German carmaker said tougher emissions rules will hit earnings in 2020 and 2021 forcing it to seek more than 1 billion euros in personnel cuts at Mercedes-Benz Cars by end of 2022.

The company said it expects to achieve a return on sales from operating activities at Mercedes-Benz Cars & Vans of at least 4per cent in the year 2020 and at least 6per cent in 2022.

Earlier this year, Daimler had said it hoped to achieve a return on sales of 3per cent to 5per cent at Mercedes-Benz Cars.

(Reporting by Edward Taylor; editing by Thomas Seythal)

Source: Reuters

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