The German automobile concern Daimler reported an operating loss of EUR 1.68 billion (almost CZK 45 billion) in the second quarter. This follows from the preliminary results of a company that, like its competitors, is facing the effects of the coronavirus crisis.
However, the loss is lower than analysts expected. The group is now working to reduce costs and, according to sources from the company referred to by DPA, intends to eliminate up to 20,000 jobs in the coming years. It currently employs around 300,000 people.
Daimler said the results for the second quarter were supported by a surprisingly strong recovery in the car market and solid performance in June. “But we still have a lot of work to do,” said Ola Källenius, head of the company. He added that the company must continue to work on reducing costs and adjusting production capacity. Daimler will publish complete results for this year’s second quarter on Thursday next week.
According to preliminary results, the operating loss increased only slightly compared to the second quarter of last year, when it amounted to 1.56 billion euros. At the time, the group’s results hit the costs of a scandal over diesel car emissions and the recall of cars with defective airbags from Japanese supplier Takata.
According to Reuters, Daimler also said that its Mercedes-Benz division in the United States and Mexico will stop the production of sedans and focus on the production of sports utility vehicles (SUVs) as part of austerity measures. The group has previously announced that it is considering selling a plant in Hambach, France, as it reorganizes its global production network.
The group’s HR director Wilfried Porth signaled in an interview with DPA last week that Daimler plans to cut more than 15,000 jobs. Today, the group’s headquarters declined to comment on the extent of the reduction in the number of employees. A spokesman for the DPA race board said talks with management were continuing and were accompanied by significant disagreements. According to him, it is important that the situation clears up quickly and that employees find out what they are up to.