Porsche is not the only German car brand that is struggling. Mercedes has now announced that it is urgently in need of 37 billion kroner.
According to German Manager Magazin, Mercedes must find 5 billion euros, equivalent to 37 billion kroner, in savings. And that sooner rather than later.
The money must be found by 2027 at the latest, when a huge savings plan must be fully implemented, the media outlet writes.
Mercedes is expected to have found half of the money by the end of 2025, but a spokesperson from the car brand has declined to comment on the story.
The only thing Mercedes will say about the situation has already been said, namely in an official statement, where the Stuttgart car brand made it clear that billions in savings must be found over the coming years.
The spokesman would not give further details about the savings plan. But the reason for the cuts was once again confirmed – it is difficult for Mercedes to make money at the moment.
The Germans call it 'a tense situation in the automotive industry in general'.
"Only by sustainably increasing our efficiency can we remain financially sound and able to act," says Mercedes.
According to Manager Magazin, over 20,000 jobs are at risk. However, job security, which the vast majority of the German automotive industry has negotiated, prevents a brand like Mercedes from laying off people before the end of 2029.
Instead, the cuts will be made through voluntary resignations and by closing vacant positions. Still, the car brand's Swedish-German director Ola Källenius will not call the savings plan 'a demand'. At least not directly.
– We have always worked with demographics, with fluctuations, and when we have carried out restructuring, for example with severance pay.
– We don't come with a lawnmower and say we have to find so and so much profit. We turn over every stone and improve our structures.
At the beginning of the fourth quarter of 2024, Mercedes reported that the period had previously seen a decline in profits. This was due to a drop in sales of as much as 6.7 percent compared to the same period in 2023. It is particularly reluctant Chinese buyers that are hurting Mercedes.
