Mercedes-Benz plans to save €1.65bn (£1.4bn) by cutting more than 1,000 jobs in the latest sign German carmakers are struggling to make big investments in electric car technology.
Carmakers around the world are spending billions on developing battery-powered electric vehicles but at the same time sales of internal combustion engines are slowing in the face of economic weakness and scandals over emissions.
Mercedes-Benz’s premium cars division will bear the bulk of the job cuts, its parent company, Daimler, said on Thursday, with cuts of €1bn from its wage bill expected by 2022. Management and contractors will be particularly affected, while the vans and trucks divisions will together cut €650m in staff and other costs.
Daimler said it would cap investment in property, plant and equipment and in research and development at current levels, with plans in place to reduce investment in the medium term.