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Entire Platforms Could Be Eliminated At Daimler Due To Cost Cuts


03/04/2020


Entire Platforms Could Be Eliminated At Daimler Due To Cost Cuts
Germany’s Luxury car maker Mercedes-Benz wants to build electric and self-driving cars and is therefore embarking on implementing a huge cost cutting plan to release available cash for investing the new age technology based vehicles. Markus Schaefer, a board member of Daimler said that this cost cutting and production restructuring effort could lead to elimination of entire engine families and platforms at the company.
 
“We will review our current lineup and the idea is streamlining the portfolio,” Schaefer said in a conference call as a replacement for the canceled roundtable discussion that was scheduled to be held at the now cancelled Geneva car show because of the concerns of the spread of the fast spreading deadly coronavirus.
 
Schaefer said that the planned cost curtailment measures that the company seeks to implement comprises of not only bringing down the different variations of the cars that it manufactures but also changes and possible eliminations of entire manufacturing platforms and powertrains themselves.
 
“Yes we will have fewer platforms in future. The SL, I can confirm on a new platform,” Schaefer said while responding to a question related to whether fewer more flexible vehicle underpinnings would be utilized by the company to manufacture cars.
 
The company could even be forced to completely eliminate some of its products because of the tightening emissions standards such as the introduction of so-called euro 7 exhaust emissions standards.
 
“The question is how many engines you take through the gauge, through euro 7,” Schaefer said. “Of course the four-cylinder has more chance to make it than the V12 to pass the gate.”
 
(Source:www.nytimes.com)