Daimler may end its partnership with the Renault-Nissan Alliance as part of a cost-saving strategy to be introduced by incoming chief executive Ola Kallenius.
Germany’s Manager Magazin asserts that the German company is looking for 6 billion euros ($6.75 billion) in cost savings and efficiency gains by 2021 at the Mercedes-Benz brand. It also wants to save a further 2 billion euros ($2.25 billion) at its Daimler Trucks division.
Daimler revealed in February in February that it would seek various cost-saving measures after its fourth-quarter operating profit fell by 22 per cent. This drop was largely attributed to trade wars, an industry downturn and the rising costs of developing electric vehicles.
In addition, it is reported that approximately 30,000 vehicles left the Mercedes-Benz factory in Tuscaloosa, Alabama with faulty electronic systems and required extensive repairs. It is claimed that this issue has led to a revenue shortfall of around 2 billion euros ($2.25 billion) and may further depress first-quarter earnings by up to 500 million euros ($561 million).
Details about how Daimler intends to end its partnership with Renault-Nissan remain unclear, though it is thought that this will be done by not renewing their common projects. The companies’ most significant shared projects are the Mercedes-Benz X-Class and Nissan Navara, as well as the Smart For Four and Renault Twingo which are closely related to each other. Mercedes also shares a factory with Infiniti in Aguascalientes, Mexico.
Carscoops has reached out to Daimler regarding these reports and are awaiting their response.