Daimler to map out deeper overhaul, EV plans at investor meeting

Daimler AG investors are anxious to hear more about plans for Mercedes-Benz electric cars and sweeping cost cuts when the German automaker’s managers brief investors on Tuesday.

Logo of Mercedes-Benz (Bloomberg)
Logo of Mercedes-Benz

Almost one year after newly installed Chief Executive Officer Ola Kallenius warned the company has no quick fixes -- a message that underwhelmed investors -- Daimler is expected to highlight its future product plans and better-than-expected performance amid a pandemic-triggered industry slump.

“We think Mercedes’ product strategy will be in focus," Patrick Hummel, an analyst at UBS Group AG who has a neutral rating on the stock, said in a note to clients. The main pillars could be accelerating electric-vehicle plans, expanding in high-end luxury niches and streamlining the brand’s legacy combustion-engine portfolio, he said.

Also check these Vehicles

Find more Cars
Mercedes Benz Amg Eqs (HT Auto photo)
107.8 kWh | Electric | Automatic | 529 Km
₹ 2.45 Cr* **Ex-showroom price
Add to compare
Check latest offers
Mg 4 Ev (HT Auto photo)
₹ 30 - 32 Lakhs* *Expected Price
View Details
Tata Sierra Ev (HT Auto photo)
₹ 25 - 30 Lakhs* *Expected Price
View Details
Tata Punch Ev (HT Auto photo)
₹ 12 - 14 Lakhs* *Expected Price
View Details
Mg Comet Ev (HT Auto photo)
₹ 7.98 - 9.98 Lakhs* *Ex-showroom price
Add to compare
Check latest offers
Tata Tiago Ev (HT Auto photo)
₹ 8.49 - 11.79 Lakhs* *Ex-showroom price
Add to compare
Check latest offers

The world’s bestselling luxury-car maker is still in talks with its powerful labor unions over management’s push for deeper cost cuts. But Kallenius closed a painful chapter for Daimler last month by settling U.S. litigation claims related to diesel cars.

“There is a low bar!" Arndt Ellinghorst, an analyst at Sanford Bernstein with an “outperform" rating on the stock, wrote in an open letter to Kallenius and Chief Financial Officer Harald Wilhelm ahead of the meeting. “You should relax, expectations are low, it can’t get much worse and this time you’re back at hosting the event from Stuttgart," he said, referring to the management team’s debut in London last year.

The messaging to investors is expected to be more focused after Kallenius hired Max Warburton, Ellinghorst’s predecessor at Bernstein, as adviser and head of special projects earlier this year to help get his restructuring plan off the ground.

Also Read : Daimler's dieselgate claims mount as more investors seek damages: Report

Mercedes-Benz logo
Mercedes-Benz logo (Bloomberg)
Mercedes-Benz logo
Mercedes-Benz logo (Bloomberg)

Daimler shares are down about 3.1% this year, outperforming larger German peer Volkswagen AG, which suffered a 24% slump, and archrival BMW AG, whose stock is down 13% year-to-date.

Five key issues investors are looking for clarity on at Daimler’s capital markets day:

  • Update on electric and hybrid model rollouts to meet stricter emissions regulations
  • Restructuring talks over job cuts and streamlining of automaker’s factory network
  • Weeding out complexity across the Mercedes vehicle lineup by axing slow-selling model variants
  • Expansion in China through more cooperation with top shareholder Geely and joint-venture partner BAIC Motor Corp.
  • Future of alliance with Renault SA and Nissan Motor Co.
  • (Also read | Daimler to stop building Mercedes sedans in the US after second-quarter loss)

Kallenius has signaled plans last month to leverage the company’s high-end Maybach nameplate in an effort to focus more on larger luxury vehicles, which generate higher returns than compact vehicles. He also has said the industry’s tectonic shift toward electric and self-driving cars offers more opportunities than risks for Daimler.

“We have to improve the financial performance of the company," he said.

First Published Date: 06 Oct 2020, 12:02 PM IST
Shopping Bag Shop Now
70% OFF
VENO Portable High Power 2 in 1 Car Vacuum Cleaner | USB Rechargeable Wireless Handheld Car Vacuum Cleaner Traveling, Camping Reusable and Sustainable (2 in 1 Vacuum Cleaner)
Rs. 899 Rs. 2,999
1% OFF
Godrej aer O – Hanging Car Air Freshener | Car Accessories | Cool Aqua (7.5g)
Rs. 98 Rs. 99
68% OFF
PUNZONE Car Body Scratch Remover - Scratch Repair Polishing Wax Kit Sponge Body Compound Cream Wax, Car Body Compound Scratch Remover
Rs. 289 Rs. 898
65% OFF
Ambrane 38W Fast Car Charger with Dual Output, Quick Charge 3.0 and Power Delivery, Type-C & USB Port, Wide Compatibility for Smart Phones (RAAP C38 A, Black)
Rs. 349 Rs. 999

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.