Daimler Aims to Cut Costs by 1.6 Billion Euros
Expected losses the German company is to make public today could amount to 82 million euro net loss for 2008, after registering a 1.76 billion euro profit in the last quarter of 2007. Daimler said it would cut cost in their passenger car segment, as well as strengthening its “Go for Ten” efficiency program.
The overall performance of Daimler was not so bad, considering the crisis. Lucky for them they also built trucks. The company sold a total of 472,100 light, medium and heavy-duty trucks worldwide, a one percent increase compared to the year before. Daimler Buses also sold well in 2008, with the division delivering a total of 40,600 buses of the Mercedes-Benz, Setra, and Orion brands worldwide, an increase of four percent versus 2007, when Daimler Buses set the initial sales record.
“Our buses had an absolute record year in 2008, with Daimler Buses achieving its best sales result ever,” said Mercedes less than a week ago. “We are particularly delighted that the global financial and economic crisis did not prevent us from defending our market leadership in key markets such as Germany and Turkey, as well as in Mexico and Latin America.”
The good news and prospects appear now to have disappeared. The company is taking precautionary measures as it plans to extend the shorter working hour program. Daimler is also taking under advisement the possibility of postponing pay raises originally programmed for May.