Car manufacturer: Daimler focuses on austerity program on the administration

Daimler

The car manufacturer wants to save money in his administration.

(Photo: AP)

StuttgartThe car maker Daimler concentrates with its initiated austerity course first on the administration. “We have to apply the existing costs in order to free up funds for the investments of the future,” Daimler’s Chief Human Resources Officer Wilfried Porth told the German Press Agency in view of the upcoming one Conversion to electromobility. “At the moment, the focus is certainly more on the administration than on the production.”

Daimler’s outgoing Chief Executive Officer Dieter Zetsche had announced “countermeasures” at the annual results press conference in early February in order to increase the profitability of the passenger car segment. Also BMW and Volkswagen have already called austerity programs. The car manufacturers are due to the conversion to Electromobility before billions in investmentsthey need to counter-finance.

VW even wants to delete jobs, BMW save 12 billion euros over the next four years. So far you are at Daimler not yet.

There are many small signals that add up, said Porth. “For example, fewer consultants, less travel, less paper and hospitality at meetings, higher efficiency.” How much money Daimler wants to save so, he did not want to say. Especially with the travel costs, he sees potential. “I think 50 percent cost reduction feasible,” said Porth. “You have to see: flying to Berlin does not cost the world”, but that multiplies quickly.

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According to a report of the “Stuttgarter Nachrichten” the expenses for travel had recently run out of control. Not so long ago, Daimler had simplified the approval procedures in the wake of cultural change and bureaucracy reduction.

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It should be allowed by the Change towards electromobility In future, tasks will also be eliminated in production at Daimler. Whether and how many jobs are affected depends, according to Porth, on how many e-cars Daimler will sell in the future and how much of it will be produced by itself. “If you look at it with a cool head and good planning, taking demographic change and natural fluctuation into account, we consider the issue to be completely manageable,” said Porth.

Operating redundancies are for the approximately 130,000 wage employees in Germany anyway excluded for years. Following the approval of the Annual General Meeting in May, the Daimler Group is planning a reorganization of the three areas of cars, trucks and services under one holding. If the employees agree, they will receive an employment guarantee until the end of 2029.

In the opinion of Michael Häberle, head of the works council at the Daimler headquarters in Stuttgart-Untertürkheim, it is also necessary to search for new tasks for the employees. Daimler has committed itself to provide enough employment and invest 35 billion euros in German locations.

The works council has its own ideas: “We believe that not every task that is outsourced is cheaper,” said Häberle. “That’s where we talk about contracts for work, products, quotes. Before you cancel your shifts with us, you have to think about whether you can recuperate production volumes that you have given to other companies. “Daimler, for example, does not currently build engines for electric cars themselves.

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Last year, under pressure from employees, the management decided that batteries would also be manufactured in Untertürkheim in the future. The cornerstone for one of the two battery factories will be laid in the coming week. In 2017, this was preceded by a week-long dispute in which works councils did not approve overtime on weekends and thus put an end to production.

Negotiations on the production of an electric powertrain in Untertürkheim have just started with the works council. “I do not see much potential for conflict,” Porth said.

A security that does not apply to the employed at Daimler agency workers: Recently, the car maker had reportedly canceled 900 of them. Porth did not want to confirm the number. “Yes – we have recently unsubscribed some temporary workers, but in total since 2005, we have hired around 9,000 temporary workers,” he said. This has nothing to do with the economy pressure.

“Often the point is, for example, that we also convert halls for electromobility in our plants in Rastatt or Untertürkheim.” During the conversion, it would not be possible to produce there.

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