Mercedes to reduce over €1.5bn annually image

Mercedes Benz, the German luxury automaker plans to take out billions in costs every year by reducing the number of vehicle platforms and using more common parts across segments, Thomas Weber – Mercedes research chief said.

“We expect a reduction in costs of more than 1.5 billion euros ($1.94 billion) annually. It’s our target to achieve the full savings effect in 2014 ideally, or 2015 at the latest,” said Thomas Weber, head of research and development at Mercedes, in an interview with Automobilwoche.

Mercedes aims to reach these savings at the latest by 2015, preferably already by 2014, the magazine quotes Weber as saying.

According to Weber, Mercedes will focus on three architectures: one for rear-wheel drive cars, one for SUVs and one for front-wheel drive compacts.

The Daimler executive also cited strong progress in reducing Mercedes vehicles’ CO2 emissions, which is required under European law. Weber said Mercedes fleet average CO2 emissions have been lowered by 35 pc between 1995 and 2011.

“In 2016, that reduction from 2011 levels will be 45 pc and it will come close to 5o pc,” he predicted.