Daimler Cuts Mercedes’ Spending to Boost Sales and Profit image

Daimler will cut costs at Mercedes-Benz to avoid forced job cuts and to push forward its target of surpassing BWM in profit and sales.

“We’re looking everywhere to increase efficiency at Mercedes-Benz Cars,” spokesman Florian Martens said.

He added that the planned savings do not include firings, which are not even taken into consideration until the end of 2016, according to the agreement signed with the labor unions. This announcement comes after the Manager Magazin published a report in which it said that Mercedes plans to cut more than 1,000 jobs in sales, finance departments and human resources. Daimler needs to quickly boost profit and sales at its Mercedes unit, which lags behind both BMW and Audi.

Daimler has also postponed Mercedes’ profit target to 2014, four years more than previously planned. CEO Dieter Zetsche began a savings program called Fit for Leadership to revive profits and to cut 2 billion euro ($2.6 billion) from spending by the end of next year. Last month Daimler extended Zetsche’s contract by only three years instead of the initially planned five years.

“A reduction in work force would be possible only on the basis of voluntary agreements,” Martens said on Wednesday. “No decisions on personnel measures have been taken.”