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| Electric shock to jobs: the costly switch to electric vehicles is pushing carmakers to shed jobs, with Mercedes-maker Daimler become the latest on Friday with a plan to cut at least 10,000 posts in the coming years (AFP Photo/Miguel MEDINA) |
Frankfurt am Main (AFP) - Luxury automaker Daimler said Friday it would scrap at least 10,000 jobs worldwide, the latest in a wave of layoffs to hit the stuttering German car industry as it battles with a costly switch to electric.
The
Mercedes-Benz maker said it wanted to save 1.4 billion euros ($1.5 billion) in
staff costs by the end of 2022 as it joins rivals in investing huge sums in the
greener, smarter cars of the future.
"The
total number worldwide will be in the five-digits," Daimler personnel
chief Wilfried Porth said in a conference call about the job cull.
He declined
to give a more detailed breakdown.
The group
said in an earlier statement that "thousands" of jobs would be axed
by the end of 2022, after clinching a deal with labour representatives.
The cull
includes slashing management jobs "by 10 percent", Daimler said,
reportedly amounting to some 1,100 positions around the world.
"The
automotive industry is in the middle of the biggest transformation in its
history," Daimler said.
"The
development towards CO2-neutral mobility requires large investments," it
added.
Along with
other manufacturers, Daimler is scrambling to get ready for tough new EU
emission rules taking effect next year, forcing it to accelerate the costly
shift to zero-emissions electric cars and plug-in hybrids.
The group,
which employs 304,000 people globally, said the job cuts would be achieved
through natural turnover, early retirement schemes and severance packages.
Fewer
parts needed
Daimler's
announcement comes as the mighty German car industry is buffeted by trade
tensions, weaker Chinese demand and a darkening economic outlook.
Other major
car companies have in recent months already unveiled plans to cut some 30,000
jobs in the sector over the next years.
Germany's
Audi said it wants to axe 9,500 jobs, followed by more than 5,000 at Volkswagen,
some 5,500 at car parts supplier Continental, while Bosch aims to cut more than
2,000 roles.
US car
giant Ford plans to scrap some 5,000 jobs in Germany alone.
Electric
engines require fewer parts and are less complicated to assemble than internal
combustion engines, needing fewer hands.
But auto
bosses have said thousands of new, hi-tech jobs will also be created in the
electric era to make cars more autonomous and connected.
German
automotive expert Ferdinand Dudenhoeffer has said he believes the German car
sector -- which currently employs 800,000 people -- will shed 250,000 jobs over
the next decade.
A total of
125,000 new ones will be created, he predicted.
Daimler
returned to profit in the third quarter and said it was expecting 2019 revenues
to be "slightly above" last year's, while operating profit would be
"significantly below" the 11.1 billion euros in 2018.
Adding to
Daimler's woes this year were expensive recalls linked to faulty Takata airbags
and to diesel cars allegedly fitted with software to dupe emissions tests.
While the
company has staunchly denied cheating, it nevertheless agreed to pay an
870-million-euro fine in Germany for having sold vehicles that did not conform
with legal emissions limits.
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