With stringent emissions norms being imposed worldwide, automakers are forced to recall their sold vehicles owing to imposed legal actions. German auto giant, Daimler AG has reportedly been hit by expensive recalls lately, which includes a €870-million fine for selling vehicles that did not comply with legal emissions limits.

Due to escalating loss, the Mercedes-Benz maker has recently revealed plans to cut jobs with an aim to save more than €1.0 billion ($1.1 billion) by the end of 2022, as it grapples with an steep switch to green vehicles.

According to a statement, the company said that Mercedes-Benz Cars is planning to save over €1 billion in personnel costs by late 2022. It added that the expanded range of all-electric and plug-in hybrid vehicles is leading to increased cost, this could have a downbeat impact on return on sales for Mercedes-Benz vehicles.

As per reports, the company did not confirm onto how many jobs would be cut overall in its cars division, but said that it would mostly be in the management and administrative roles. Daimler reportedly employs around 304,000 people worldwide. Sources claim that the company could likely cut around 1,100 management jobs.

As a whole, the German car industry is facing weaker-than-expected growth on account of the Brexit uncertainty and US-China trade conflicts. These setbacks has pushed Daimler into a net loss of €1.2 billion in Q2.

However, with the advent of electric vehicle, there could be an estimated increase in new job opportunities. For instance, while unveiling the Tesla's Berlin touchdown, Elon Musk claimed that the company had picked a site in Brandenburg for its new factory, which is expected to bring around 7,000 jobs. Some suggest that the job numbers could be close to 10,000.

Reportedly, Musk tweeted that the plant, located in an area southeast of the German capital, will develop powertrains, batteries and vehicles, starting with Tesla Model Y SUVs.

Source Credit: https://economictimes.indiatimes.com/news/international/business/daimler-set-to-slash-jobs-to-save-1-billion-euros/articleshow/72062026.cms