💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Mercedes reviews vans model portfolio as diesel debate hammers sales

Published 08/20/2019, 09:40 AM
Updated 08/20/2019, 09:46 AM
© Reuters.  Mercedes reviews vans model portfolio as diesel debate hammers sales
MBGn
-

SINDELFINGEN, Germany (Reuters) - Daimler (DE:DAIGn) is reviewing the product portfolio at its vans division, where sales have been hit hard by doubts about the cleanliness of diesel engined vehicles, Mercedes-Benz executive Marcus Breitschwerdt said on Tuesday.

"In order to optimize our performance, this also means reviewing and realigning our strategic orientation," Breitschwerdt, head of Mercedes-Benz Vans, said at the launch of an electric Mercedes-Benz van on Tuesday.

Daimler will seek cost-saving opportunities, including through a review of the company's' product portfolio, he said.

"We are looking at what we have and what we could have," Breitschwerdt said, adding that the X-Class midsize pickup truck was not delivering the sales volumes the company had hoped for.

"The X-Class is a niche product," the Daimler manager said at an event in Sindelfingen near Stuttgart. Furthermore Mercedes-Benz was not interested in entering the full-sized pickup truck segment, Breitschwerdt said.

He added that the vans division had too many management layers and the company was looking at ways to cut fixed costs without resorting to forced layoffs. Daimler's vans division employs 26,000 staff.

Mercedes-Benz launched the EQV, an electric van with a theoretical operating range of around 400 kilometers and the ability to charge the battery to 80% of capacity within 45 minutes, Daimler said.

The Mercedes-Benz EQV will hit showrooms in early 2020, the company said.

Breitschwerdt said he expected 15% to 25% of van sales by 2025 to be fully electric variants in the passenger segment and that he would consider diversifying the cell supplier base to ensure a sufficient supply of batteries as production ramps up.

Breitschwerdt also said that although autonomous driving was possible from a technological point of view, the business models for operating autonomous vehicles were not yet proven.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.