Daimler on Tuesday said it will cut fixed costs, capex and research and development expenditure by more than 20% by 2025 compared with 2019 levels as part of a strategy overhaul to reposition Mercedes-Benz as a luxury brand.
By 2025, Mercedes-Benz AG is aiming for a return on sales within a mid to high single-digit range, even under unfavourable market conditions, the carmaker said.
The company’s ambition is to achieve a double-digit margin in a strong market environment, Daimler said.
Earlier this year, Mercedes-Benz stopped building sedans in the United States to focus on more profitable SUV's, combined its fuel cell development with Volvo Trucks, and halted an automated development alliance with BMW.
Reporting by Edward Taylor; Editing by Riham Alkousaa. Editing by Jane Merriman