Ola Källenius, the new Daimler CEO, prepares a 20% cut in administrative costs

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Daimler’s new CEO, Ola Källenius, is preparing a 20% reduction in the administrative costs the group has, according to German press reports. Källenius will take over as CEO from Dieter Zetsche as of May 22.

Ola Källenius, the Swedish who will soon become CEO of the Daimler Group, is launching a comprehensive reorganization program that aims, among other things, to reduce costs and rethink partnerships.

The German press claims that the new Daimler chief has been working for several months on an initiative called “Move”, which will be ready this summer. Thus, administrative costs would fall by about 20% and save Daimler several billion euros, according to Handelsblatt. The Daimler Group declined to comment on the subject.

Källenius recently said that Daimler will significantly reduce the cost of developing new Mercedes-Benz models by 2025, and will step up alliances with traditional rivals to improve profit margins.

Ola Källenius will take over as CEO at Dieter Zetsche, starting May 22, after Daimler’s annual general meeting.