Click For Photo: https://image.businessinsider.com/5dcd8dca7eece56e92005a93?width=1200&format=jpeg&imgtype=.jpg
Mercedes-builder Daimler anticipates its transition to electric vehicles will further squeeze profits until 2022, Bloomberg reported Thursday.
The margin headwinds call for job cuts and capped development spending, CEO Ola Kallenius said at his first major strategy presentation since assuming the role in May.
Costs - Electric-vehicle - Development - Join - Hurdles
The costs associated with electric-vehicle development join trade-war hurdles and stricter European Union emissions laws as significant pressures against Daimler's future earnings.
Watch Daimler trade live here.
Daimler - CEO - Ola - Kallenius - Profit
Daimler CEO Ola Kallenius expects profit pressures to persist through 2021 as the Mercedes-parent continues its transition to electric vehicles, Bloomberg reported Thursday.
The chief executive, who assumed the post in May, announced a plan to slash investment and cut its workforce to save more than $1.4 billion and boost margins. Daimler is in the midst of a shift to electric vehicles while also facing stricter European Union emissions standards and global trade-war hurdles.
Daimler - Profit - Warnings - CEO - Statement
Daimler already issued two profit warnings in 2019, and the CEO's latest statement noted that the auto giant's earnings will face similar pressures for the next two years.
"To remain successful in the future, we must therefore act now and significantly increase our financial strength," Kallenius said in his first major strategy presentation since becoming CEO. He noted that "comprehensive measures to increase efficiency" are required throughout the company.
Company - Margins - %
The German company now anticipates margins of 4% in...
Wake Up To Breaking News!