Core Viewpoint - Mercedes-Benz has initiated a voluntary severance plan to reduce workforce and cut costs, aiming to save approximately €5 billion annually by 2027, while reallocating funds towards electric vehicle and autonomous driving technology development [3][5]. Group 1: Severance Plan Details - The voluntary severance plan, launched in April, aims to encourage around 30,000 employees to leave voluntarily by offering generous severance packages [3]. - Approximately 4,000 employees have already accepted the severance offer [4]. - The severance packages vary based on tenure, with entry-level employees receiving basic compensation linked to their service duration, while management positions can receive significantly higher amounts, such as €300,000 for a 15-year service director [3]. Group 2: Financial Performance - In the first half of 2025, Mercedes-Benz reported sales revenue of €66.3 billion, a decrease of 8.6% year-on-year, with a net profit of €2.7 billion, down 55.8% compared to the previous year [7]. - Global sales volume for the first half of the year was 1.0763 million units, reflecting an 8% decline, with electric vehicle sales dropping 14% to 87,300 units [7][8]. - The Chinese market, being the largest single market for Mercedes-Benz, saw a significant decline in sales, with a 14% drop to 293,200 units, marking it as the market with the highest decline globally [8]. Group 3: Industry Context - The German automotive industry is under significant pressure, with competitors like BMW and Volkswagen also reporting declines in sales and profits [8]. - BMW's sales revenue for the first half of the year was €67.7 billion, down 8%, while Volkswagen reported a slight decrease in revenue to €158.4 billion [8]. - The industry faces additional challenges from U.S. tariffs, which have increased export costs for German manufacturers, impacting their global supply chain strategies [9].
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