Barely a day goes by without a new announcement of cutbacks and job cuts in the auto industry in Germany. The coronavirus pandemic is being deliberately used to slash costs and increase profits.
Last Tuesday, Daimler CEO Ola Källenius announced at a conference with investors that the Mercedes auto division would reduce its fixed costs by more than a fifth by 2025 (compared to 2019) by cutting capacity and personnel costs.
Källenius made no effort to hide the reason behind the decision. The plan was to restore profits to double-digits by 2025. Even under unfavourable conditions, the company was aiming for a profit margin “in the mid to high single-digit percentage range.”
The cuts program, which was already announced in recent months, is expected to result in the loss of around 30,000 jobs worldwide, i.e., almost one in ten. While the