After a significant decline in turnover and income, the German car company Mercedes-Benz has announced that it will reduce costs by several billion euros in the coming years.
“We will turn over every stone”, said the representative of Mercedes to Stuttgarter Zeitung, without hiding that the situation is bad and that there are many problems.
The results of the third quarter confirm this – compared to the previous year, the consolidated profit decreased by more than 50 percent to 1.72 billion euros, and sales decreased by 6.7 percent to 34.5 billion euros.
China stands out as the biggest problem area, where expensive Mercedes models previously brought profits to the company. Now the situation has changed to some extent because China is also suffering an economic downturn and wealthy consumers are refusing to buy expensive, in part because local car manufacturers are putting more and more pressure on , taking away the German company’s market share.
This should be seen in the context of the unstable situation in the world economy and the overall difficult situation in the automotive industry, so Mercedes needs a long-term increase in efficiency, which it hope to achieve, including cutting costs by several billion euros each. year.
The representative of the company does not explain in detail, leaving the question of possible job cuts. In this regard, the newspaper reminds that the contract known as “Zusi 2030” basically excludes the elimination of workers for operational reasons until the end of 2029.
The situation is not so bad for Volkswagen, which is considering closing three factories, however, the union that represents the workers of the concern has taken a step towards the management and has proposed reducing wages to avoid closing production plants. and eliminate ten thousand jobs.
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2024-11-24 09:40:00
#Mercedes #announces #tough #plan
Here are two PAA-related (People, Actions, Attitude) questions for the provided text:
## World Today News: Mercedes Cuts and the Future of the Auto Industry
**Introduction**:
Welcome to World Today News. Today we’re joined by two distinguished guests to discuss the recent news regarding Mercedes-Benz’s cost-cutting measures and the broader challenges faced by the automotive industry.
We have with us **Dr. Anna Schmidt**, an automotive industry analyst at [Reputable Institution], and **Mr. John Davis**, a spokesperson for the United Workers Union. Welcome to you both.
**Section 1: Mercedes-Benz and the Challenging Global Economy**
* **Dr. Schmidt, Mercedes-Benz’s announcement of billion-euro cost cuts paints a stark picture. Could you elaborate on the specific economic factors driving these drastic measures?**
* **Beyond China’s economic slowdown, what other global trends are impacting the automotive industry as a whole? Could these trends fundamentally change the industry landscape in the long term?**
**Section 2: The Chinese Market and Competition**
* **Mr. Davis, the article mentions that Chinese consumers are turning away from luxury vehicles. How do you see this shift impacting the German automotive industry, and what strategies can companies like Mercedes-Benz adopt to remain competitive in this crucial market?**
* **With the rise of domestic Chinese automakers, how is the competitive landscape changing in the global car market? What are the implications for both established brands and emerging players in this dynamic environment?**
* **Dr. Schmidt, are there any particular innovations or technological advancements that could help Mercedes-Benz differentiate itself in a market filled with increasingly capable Chinese competitors? **
**Section 3: Cost-Cutting Measures and the Workforce**
* **Mr. Davis, Mercedes-Benz has alluded to cost-cutting measures without specifying details, especially regarding potential job losses. What are the union’s concerns regarding these measures, and how are you working with Mercedes-Benz to ensure the well-being of its workforce during these difficult times?**
* **Dr. Schmidt, considering the “Zusi 2030” agreement, what alternative cost-cutting strategies could Mercedes-Benz explore to navigate this economic downturn without resorting to layoffs? Are there examples from other industries that they could learn from?**
**Section 4: The Future of the Automotive Industry**
* **Mr. Davis and Dr. Schmidt, what key factors will determine the success or failure of companies like Mercedes-Benz in the coming years? Is there a need for a fundamental shift in business strategies within the automotive industry?**
* **Looking ahead five to ten years, what do you see as the biggest challenges and opportunities facing the automotive industry? How will factors such as electric vehicles, automation, and changing consumer preferences shape the future?**
**Conclusion**:
Thank you both for your valuable insights.
This discussion has shed light on the significant challenges facing Mercedes-Benz and the wider automotive industry. As the industry navigates these turbulent waters, finding a balance between financial prudence, technological innovation, and the well-being of its workforce will be crucial.
We will continue to follow these developments closely and provide further analysis and expert commentary on World Today News.
