FRANKFURT — Daimler mentioned on Tuesday it’ll lower fastened prices, capital bills and research-and-development spending by greater than 20% by 2025 in contrast with 2019 ranges as a part of a method overhaul to reposition Mercedes-Benz extra upmarket as a luxurious model.
The corporate’s ambition is to attain a double-digit return on gross sales margin by doubling gross sales of Maybach-branded vehicles, and ramping up gross sales of AMG and G-Wagon derivatives of the Mercedes model, Daimler mentioned.
“We are going to pursue larger portfolio profitability, we are going to steer by contribution margin, we are going to transfer (the) present portfolio margin up and transfer capital to luxurious and high-end merchandise,” Chief Monetary Officer Harald Wilhem mentioned in a digital presentation of the corporate’s technique.
By 2025, Mercedes-Benz AG goals for a return on gross sales inside a mid to excessive single-digit vary, even underneath unfavorable market circumstances, the carmaker mentioned.
Daimler has already lower prices because the coronavirus pandemic led to a droop in gross sales and working losses within the first and second quarters.
To counter losses, Mercedes-Benz stopped constructing sedans in america to deal with extra worthwhile SUVs, mixed its gas cell growth with Volvo Vans, and halted an automatic growth alliance with BMW.