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Bloomberg
Daimler AG plans to sell its factory in Hambach, France, as the maker of Mercedes-Benz cars pursues deeper-than-expected restructuring to overcome the fallout of the coronavirus pandemic.
The move to unload the home of the Smart two-seater will result in a negative one-time effect of roughly $562 million in the second quarter, Daimler said. It doesn’t expect an impact on free cash flow.
The CEO warned he’ll have to pursue more painful restructuring because of fallout from the virus, which shuttered factories and dealerships around world.
Carmakers around the world are slashing costs to cope with the historic slump in sales. BMW AG last month said it would cut about 6,000 jobs, the biggest reduction since the 2008 financial crisis.
Daimler and BMW also scrapped a planned joint venture aimed at making self-driving cars.
About 1,600 people work at the Hambach plant, which has been producing electric Smart cars. Daimler said it will shift production of the model to its Chinese joint venture with Zhejiang Geely.