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

epa07486360 (FILE) - A logo of car maker Mercedes Benz is pictured on a new car at the port of Bremerhaven, northern Germany, 03 March 2017 (reissued 05 April 2019). Media reports on 05 April 2019 state the EU commission regulators in a statement have charged German carmakers Daimler, Volkswagen and BMW of collusion in the area of emissions cleaning technology by 'participating in a collusive scheme, in breach of EU competition rules, to limit the development and roll-out of emission-cleaning technology for new diesel and petrol passenger cars sold in the European Economic Area'. EPA-EFE/FOCKE STRANGMANN

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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 (£861 million) 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 4% in the year 2020 and at least 6% in 2022.

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

 

Via Reuters

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