Daimler May End Renault-Nissan Partnership, Cut 10,000 Jobs To Reduce Costs

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.

Kallenius will take over the top job at Daimler from Dieter Zetsche in May, and as part of the cost saving measures, could cut around 10,000 jobs across the company, Auto News reports.

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.

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  • Mr. EP9

    10k jobs cut?

    Oh, that’s going to hurt.

  • kandra

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  • exeptor

    “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)”. How the hell is this possible? If we make a simple calculation it turns out that each of these cars brings Daimler back with more than $75,000. What does this means – they just get back the car and return the money? It sounds really unrealistic.

    • Kash

      I assume they could also be calculating the cost of the loaners or even rental and any work that had to be referred out or turned away while they had one of those vehicles in their shop working on it. There might be a possibility that they did buy a couple vehicles back though.

  • Randy Terpstra

    The next generation Smart car will no longer be Renault Twingo based, as Daimler Benz has spun 50% of Smart off to Chinese automaker Geely. Geely will reportedly engineer the platform, while Daimler Benz handle the styling and marketing. According to Reuters, it seems all Smart car production will be moved to China, as well.

    https://www.reuters.com/article/us-daimler-geely-electric/daimler-to-develop-smart-brand-together-with-geely-idUSKCN1R90NG

  • Loquacious Borborygmus

    The end of the ICE might not seem to be near for US citizens but manufacturers are retreating as they are getting ready for a time of much change.

  • rover10

    It begins, retrenchment will be the order throughout the World as self driving and electric propulsion takes hold. Who will remain in the auto business will be the burning question, but stockholders will face huge problems and possible losses, guessing who will be the remainers in the industry?

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