In connection with the reviews, costly fines for illegal software for diesel engines and a slowdown in the global market, Daimler is starting an austerity program, which, if implemented, would reduce 10 percent of its control jobs (1,100 posts) and will freeze the salaries of 300,000 workers in Germany.
Relevant data published by the German newspaper Süddeutsche Zeitung, citing an email sent to Council staff working group. The news was confirmed by the Handelsblatt and the German news Agency DPA.
Daimler declined to confirm the reduction, which reportedly will be announced CEO Ola Kallenius in London on Thursday.
Reportedly, Kallenius also ask German workers not to demand wage increases, as the automaker struggles with tension in world trade requires costly reviews and the huge fine imposed by the German authorities for fraud when checking the emissions.
The company has allocated 2.6 billion euros to cover the costs associated with diesel fuel, in the first half of 2019 after the German regulator KBA ordered to recall 60,000 models of the GLK, alleging that the cars used illegal software engine.
However, he refused to analyze in detail which part of the amount was allocated to review, update, and possible penalties and litigation. Moreover, in the second quarter, the company incurred a net loss of 1.2 billion euros ($1.3 billion), which was her first three-month loss in 10 years.
The news was not well received by his staff. Chairman of the production Council and a member of the Daimler Supervisory Board Michael Brecht was adamant that these measures are not taken: “This requirement is true of emotions and a high level of misunderstanding,” he said.
And although he admits that spending cuts will inevitably, he believes that the proposals of Callenius disproportionate to the financial position of the company and, therefore, reject them strongly. Kallenius and Brecht were negotiating, but could not come to an agreement.