Daimler to cut fixed costs and take Mercedes more upmarket

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German carmaker Daimler said it would cut fixed costs, capital expenditure and research and development spending by more than 20% by 2025

The move will see Mercedes-Benz, currently the world’s top selling premium car brand, turn its back on a decades-old strategy of chasing sales volume to focus on the industry’s most profitable segments: limousines and sport-utility vehicles.

Instead of chasing volume for its own sake, Mercedes-Benz will aim to double sales of high-end Maybach branded cars, which retail for 150,000 euros or more, and ramp up sales of AMG and G-Wagon derivatives, including electric variants. New vehicle platforms, including a second electric vehicle architecture known as MMA, will take less time to build, just like the new Mercedes-Benz S-Class, which takes 25% less time to assemble than its predecessor.

 

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