Daimler board backs strategy, staff fund planned

BERLIN (Reuters) – The supervisory board of German automaker Daimler agreed on Thursday to back a strategic plan to cut fixed costs, capex and R&D spending and announced a new transformation fund for staff worth 1 billion euros (903.39 million pounds) up until 2025.

Daimler said in a statement that the supervisory board had given its full backing to the company’s strategy announced in October, which includes a cut in R&D spending and capex at Mercedes Benz cars of 20% by 2025 from its level in 2019.

It said management had agreed with the works council to set up a fund in the first quarter of 2021 to help safeguard employment as German car factories shift to making electric vehicles.