Mercedes-Benz Implements Cost-Cutting Measures in China
German automaker Mercedes-Benz is taking significant steps to reduce costs in China, aiming to enhance sales performance and strengthen its competitive position against rivals like BYD and Tesla. Sources revealed to 36Kr that Mercedes-Benz is introducing new cost-cutting initiatives, such as revamping its performance evaluation system for local employees and streamlining production lines.
The company plans to implement a program of objectives and key results (OKR) at its research and development center in Shanghai, with a focus on motivating underperforming employees to improve or exit the organisation. Additionally, Mercedes-Benz is contemplating reducing production lines at its two joint factories with manufacturing partner BAIC near China's capital.
These efforts come in response to a 7% decline in Mercedes-Benz sales in China last year, amounting to around 714,000 units. In November, the German automaker announced its intention to slash costs by "several billion euros per year" in the upcoming years.
Mercedes-Benz is redesigning its performance evaluation system for local employees.
The company plans to introduce a program of objectives and key results (OKR) at its Shanghai R&D center.
Mercedes-Benz is considering cutting production lines at its joint factories with BAIC near China's capital.
Source: TECHNODE