Daimler faces tough times: “stronger headwinds”

Daimler faces tough times: 'stronger headwinds'

According to a works council spokeswoman, the staff had already received it in summer. The carmaker anticipates a drop in operating profits in its passenger car division due to flat sales in europe and announced a cost-cutting program. However, daimler did not yet want to say to what extent the employees will be affected.

"The more impassable the terrain, however, the more difficult it is to drive." The more important it will be to keep our own "pack" together as easy as possible," wrote zetsche in the letter. "Every euro we spend on expendable items is one euro less for our competitiveness."The "financial times deutschland" had previously reported that the planned savings package was worth 1 billion euros. A daimler spokesman did not want to comment on the figure.

Company and union sources said on friday that neither job cuts nor short-time work were planned. In response to a dpa inquiry, the spokeswoman for the daimler works council explained that there had been no talk of cutting personnel costs. The same is true for the total sales package.

Industry experts believe that cutbacks are likely, especially in production and purchasing. "The fact is that you have to cut back on production capacity," auto expert stefan bratzel told the financial news agency dpa-AFX. According to experts, the group is also likely to enter into negotiations with its suppliers.

Willi diez, head of the institute of automotive economics at nurtingen-geislingen university, also considers a "temporary hiring freeze" to be possible. He told the dpa that he does not think there will be any job cuts or short-time work. "I can’t imagine that. Sales are going well."

However, the weak car market in europe is not only causing problems for daimler in the luxury segment. The sports car manufacturer porsche has already announced that it intends to sell more cars again in 2013. However, the increase could be between 5 and 10 percent lower than previously planned. Meanwhile, rivals BMW and audi reaffirmed their forecasts and continue to expect record results.

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