(RTTNews) – Mercedes-Benz said it will improve its profitability and cash generation and take actions to prepare for the future and to accelerate the transition to electric drive. It will take significant new steps to reduce the cost base and improve the industrial footprint in the period to 2025.

At a virtual investor and analyst conference, the company said it will cut fixed costs by more than 20% by 2025 in absolute terms compared to the 2019, through reduced spending, capacity adjustments and lower personnel costs.

Capex and R&D expenditure are set to decrease by more than 20% by 2025 compared to 2019. Variable costs will be reduced by 1% net per annum compared to the level of 2019 during the period until 2025.

By 2025, Mercedes-Benz AG aims for a return on sales (RoS) level within a mid to high single-digit range, even under unfavorable market conditions. The company’s

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STUTTGART, Germany, Oct. 6, 2020 /PRNewswire/ —

  • New Mercedes-Benz strategy for the car business unveiled today at a virtual investor and analyst conference.
  • The new strategy will enhance the Mercedes-Benz brand’s luxury status, raise the product portfolio’s positioning and mix, pursue significant growth for sub-brands AMG, Maybach, G and EQ and accelerate the development of electric drive and car software.
  • Mercedes-Benz confirms its full commitment to electrification across all products and segments, unveils new dedicated electric architectures, and announces multiple new electric product launches.
  • Four all-new electric vehicles on new large EVA architecture set for launch from 2021.
  • New electric products coming for AMG, Maybach and G.
  • New “Electric first” MMA platform in development for compact and medium sized cars.
  • Expanded cost reduction plans unveiled that will drive down capex, R&D and fixed costs in absolute terms and will improve the industrial footprint.
  • Financial ambitions sharpened: lowering break-even point,
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