Volkswagen, BMW and Daimler
German carmakers were previously regarded as profit guarantors.
FrankfurtFor the successful carmaker BMW were the words of CEO Harald Kruger unfamiliar. Not only did he have to announce a profit decline in mid-March, Krüger announced at the same time comprehensive cuts.
By the end of 2022, at least twelve billion euros should be saved, also by reducing jobs. BMW belonged like other automakers among the German large corporations up to now the guarantors of high profits. This time is over, at least for now.
In order to prepare for the transition to climate-neutral cars and new mobility concepts, vehicle manufacturers must finance developments that add up to tens of billions of euros. The current business can only raise money by cutting costs.
On the customers, the additional costs were loud Daimler-Boss Dieter Zetsche do not completely move. The BMW competitor from Stuttgart must therefore bow to the new austerity dictates. “Everything is under scrutiny: fixed and variable costs, material and personnel costs, investment projects, the depth of added value and the product range,” Zetsche recently announced at the AGM of the car company. It will have hurt the longtime boss especially, after all, it was Zetsches last appearance before the shareholders.
Current club events
Wednesday, 05.06.19, 17:30 Berlin: Renewable fuels
Thursday, 06.06.19, 08:30 Salzburg: Aviation-Event 2019
Thursday, 13.06.19, 18:30 Hamburg: Hall of Fame – The Dialogue 2019
Sunday, 16.06.19, 11:00 Stuttgart: MercedesCup 2019
Wednesday, 19.06.19, 10:30 Dresden: Morals & Machines 2019
Thursday, 04.07.19, 09:00 Frankfurt am Main: Handelsblatt CFO Congress
His successor Ola Källenius now has to implement the cuts. This has concrete numbers DaimlerManagement not mentioned. The amount is likely to move in the billions.
The reason why the savings targets are set so high is not only due to the development spending to be halted. The German automakers also have a backlog. Although BMW, Daimler and Volkswagen In recent years, their efficiency has also improved with austerity packages. However, deep cuts were not necessary so far, as the demand for German cars was high. Suffice the companies, a high-ranking manager sober.
How tired, shows up Volkswagen, The group with its many brands has stormed to the top of the automotive industry. The bottom line was even for the past year, a record profit. This state of the industry leader will not be able to hold endless without cuts.
Costs should not only be lowered for the core VW brand, but also for the sister companies. The biggest catch-up is the premium brand Audi, which wants to save a total of 15 billion euros by 2022. Also the component daughter Skoda and the sports car daughter Porsche are not spared from the cuts.
More: The job guarantee is a big risk for Volkswagen. Because nobody knows how successful the electrification is – a comment.
*/
]]>
The most important news every morning in your inbox.