Daimler to cut fixed costs in luxury drive

A change of gear at German car maker Daimler will see it cut fixed costs, capital expenditure and research and development spending by more than 20% by 2025.

Announced Tuesday (Oct 6), the strategy overhaul will reposition Mercedes-Benz more as a luxury brand.

The goal is to achieve a double-digit return on sales margins by doubling sales of Maybach branded cars.

It will also ramp up sales of AMG and G-Class derivatives of the Mercedes brand.

During a virtual presentation, the company said it will "pursue higher portfolio profitability, and move capital to luxury and high-end products,"

Daimler has already cut costs as the coronavirus pandemic led to a slump in sales.

The carmaker reported operating losses in the first and second quarters.

To counter that, Mercedes-Benz stopped building sedans in the United States.

And decided to instead focus on more profitable SUVs, while also combining its fuel cell development with Volvo Trucks.