On April 2, according to Automotive News Europe, Daimler Group said it had signed a 12 billion euro (approximately RMB 92 billion) credit line agreement to strengthen its Financial flexibility during the current coronavirus crisis.
Daimler said the new loan facility will be available for 12 months, with two six-month extensions. Signatory banks include BNP Paribas, Santander, Deutsche Bank and JPMorgan Chase.
Previously, the EU had provided Daimler with a revolving loan of 11 billion euros, with a term of 2025, including extended loans. In other words, with the addition of this credit line, Daimler has "borrowed" hundreds of billions of dollars.
Judging from the 2019 financial report data released by Daimler on February 11, the group’s current capital flow is tight. Data show that the Daimler Group's revenue in 2019 reached 172.7 billion euros, a year-on-year increase of 3%. However, affected by multiple factors, its net profit was 2.7 billion euros, a year-on-year decrease of 64%.
As for the reason why profits were "cut in half", Daimler's explanation is that on the one hand, in order to pay for legal proceedings and fines in Europe, the United States and other places, it allocated 4 billion for the whole year *** Euros; on the other hand, it is due to the group's continued high R&D expenditures, which increased by 9.7 billion euros last year (9.1 billion euros in 2018).
To this end, Daimler is vigorously carrying out measures to reduce costs and increase efficiency, including reducing labor and material costs, adjusting product lineup and models, advancing platform strategy, and tighter capital allocation. The company expects to have an initial positive effect on profits in fiscal 2020 and reduce labor costs by more than 1.4 billion euros by the end of 2022.
Ola?K?llenius, Chairman of the Board of Directors of Daimler
After entering 2020, the sudden new crown pneumonia epidemic is tantamount to "adding insult to injury" to Daimler. . It is understood that Daimler has closed some factories since mid-March, including three factories in Bremen, Rastatt, and Sindelfingen in Germany, the Hambach factory in France, the Moscow factory in Russia, and the Tuscaloosa factory in the United States. and Charleston plant, among others, with production shutdowns expected to last two weeks.
On April 2, while announcing the credit plan, in response to the impact of the epidemic, Daimler announced that Ola? The fixed salary will be cut by 20% from 1st to the end of the year. Meanwhile, other executives will see their salaries reduced by $10 over the next three months.
It is reported that Kallenius’ fixed salary in 2019 is 1.34 million euros. He also received €3.5 million in variable remuneration, including shares and performance bonuses.
In addition to Kallenius, Daimler's management board has seven other members. According to Daimler's annual report, the basic salary of other management board members ranges from 400,000 euros to 800,000 euros.
As the epidemic continues to spread, automobile production in Europe and North America has stalled, and most dealer stores have been forced to close. Automakers are seeking to ensure cash flow while avoiding large-scale layoffs. method.
Earlier this week, Fiat Chrysler Automobiles (FCA) Chief Executive Mike Manley told employees that the company’s plans to start in April will be reduced as the company grapples with the impact of the coronavirus outbreak. Within three months, his salary will be cut in half. The other 19 members of FCA Group's executive committee will be cut by 30. FCA Group Chairman John Elkann (John Elkann) and other board members will not receive any compensation for the remainder of the year.
This article comes from the author of Autohome Chejiahao and does not represent the views and positions of Autohome.