Daimler to cut fixed costs by more than 20% by 2025

FRANKFURT (Reuters) – Daimler on Tuesday said it will cut fixed costs, capex and research and development expenditure by more than 20% by 2025 compared with 2019 levels as part of a strategy overhaul to reposition Mercedes-Benz as a luxury brand.

By 2025, Mercedes-Benz AG is aiming for a return on sales within a mid to high single-digit range, even under unfavourable market conditions, the carmaker said.

The company’s ambition is to achieve a double-digit margin in a strong market environment, Daimler said.

Earlier this year, Mercedes-Benz stopped building sedans in the United States to focus on more profitable SUV’s, combined its fuel cell development with Volvo Trucks, and halted an automated development alliance with BMW .

(Reporting by Edward Taylor; Editing by Riham Alkousaa. Editing by Jane Merriman)