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Daimler to Cut Costs by 20%

The goal is to increase profits by selling more luxury vehicles.

The maker of Mercedes-Benz has ambitions for even higher-end luxury than before.

The company has announced it will cut spending by 20% with the goal of repositioning Mercedes.

Daimler says the reductions will come in fixed costs, R&D and capital expenses.

According to Reuters, “manual gearboxes will be dropped as an option, and the variety of combustion engines on offer will be cut by 70% by 2030.”

The company hopes to prioritize profit margin over volume and also “move capital to luxury and high-end products.”

One goal is to double sales of Maybach-branded vehicles, as well as Mercedes AMG and G-wagons.

Another is to cut the costs of battery systems and optimize build times on high-end vehicles.

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