This archive report was first published on 17 July 2020.
On July 23, 2020, Daimler released its second-quarter operating loss, which stood at 1.68 billion euros ($1.91 billion). The company had pre-released better-than-consensus numbers, with Jefferies analyst Philippe Houchois noting, “Daimler pre-released better-than-consensus second-quarter numbers.”
As part of its restructuring efforts, Daimler will halt production of its Mercedes-Benz C-Class sedan in Tuscaloosa, Alabama, and a variant of the compact Mercedes-Benz A-Class in Aguascalientes, Mexico. The company will focus on producing sport utility vehicles (SUVs) and the GLB, a newer, higher-margin SUV model.
CEO Ola Kaellenius emphasized the need for continued cost-cutting efforts, stating, “Our systematic efforts to lower the breakeven of the company by reducing costs and adjusting capacity will need to continue.”
Daimler has already incurred 687 million euros in restructuring costs and is seeking 2 billion euros in annual savings through staff cuts, which is equivalent to more than 20,000 jobs. The company is also reviewing its portfolio of niche cars and considering the sale of its factory in Hambach, France, and its plant in Iracemapolis, Brazil.
