- Daimler to accelerate the transformation towards electrification and digitization
- Investment plan of more than €70 billion confirmed
- Board of Management and General Works Council launch a new transformation fund with a value of €1 billion
Stuttgart (Germany) – The Supervisory Board of Daimler AG has given its full backing to the company’s strategic course, the related business plan for the years 2021 through 2025, and the measures derived to achieve the targeted profitability. As one of those measures, the investment plan for the ongoing transformation towards electrification and digitization was confirmed. From 2021 through 2025, Daimler will invest more than €70 billion in research and development and in property, plant and equipment. Most of this investment will be at Mercedes-Benz Cars. As explained in the Mercedes-Benz Strategy Update on October 6, Mercedes-Benz Cars’ R&D expenditure and capex will decrease during this period and will be more than 20% lower in 2025 than in 2019. Furthermore, within this business plan Daimler Trucks will also be able to accelerate its plans towards emission free transportation.
Management and the General Works Council have also agreed to set up a transformation fund with a value of €1 billion and a term until 2025. This amount comes in addition to the planned investments. The details of the fund will be established by the two parties in the first quarter of 2021. It will mainly be used to promote the further development of future technologies and to safeguard employment during the transformation at the German sites.
Ola Källenius, Chairman of the Boards of Management of Daimler AG and Mercedes-Benz AG: “With the Supervisory Board’s confidence in our strategic course, we will be able to invest more than €70 billion over the next five years. We want to push ahead faster in particular with electrification and digitization. In addition, we have agreed with the Works Council on a transformation fund. With this agreement, we are fulfilling our shared responsibility to actively shape the transformation of our company. Improving our profitability and targeted investment in Daimler’s future go hand in hand.”
Michael Brecht, Chairman of the General Works Council of Daimler AG: “After controversial discussions in recent weeks, we have achieved that, in addition to the Daimler investment plan, a transformation fund of €1 billion is to be established. The General Works Council has called for this transformation fund in order to enable additional investment in the ongoing development of our sites. In this way, we can mitigate the disruption of the transformation and send an important signal to our colleagues. The additional funding gives us more opportunities to implement new technologies and products in our plants, thus protecting jobs and know-how. The fund is therefore an important element to make the transformation at Daimler a fair one.”