Mercedes-Benz Cars to slash 1 billion euros in costs by 2022

FILE PHOTO: A Mercedes-Benz Concept IAA car is displayed prior to the Daimler annual shareholder meeting in Berlin, Germany, April 6, 2016. REUTERS/Hannibal Hanschke

FRANKFURT (Reuters) – Daimler (DAIGn.DE) shares fell sharply on Thursday after the German carmaker said tougher emissions rules will hit earnings in 2020 and 2021 forcing it to seek more than 1 billion euros in personnel cuts at Mercedes-Benz Cars by end of 2022.

The company said it expects to achieve a return on sales from operating activities at Mercedes-Benz Cars & Vans of at least 4% in the year 2020 and at least 6% in 2022.

Earlier this year, Daimler had said it hoped to achieve a return on sales of 3% to 5% at Mercedes-Benz Cars.

Reporting by Edward Taylor; editing by Thomas Seythal

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source: reuters.com