Daimler will seek to make major cost cuts and end ties with the Renault Nissan Mitsubishi Alliance, Manager Magazin reported on Thursday.
According to the German publication, incoming Daimler CEO Ola Kaellenius will not renew joint projects with the Renault Nissan Mitsubishi Alliance. He will also reportedly seek to make 6 billion euros ($6.75 billion) worth of savings by 2021.
Part of the decision is thought to be due to last year's arrest of former Renault Nissan boss Carlos Ghosn on financial misconduct charges. Kaellenius' predecessor, Dieter Zetsche, who is expected to become Daimler's chairman in 2021, was a key proponent of the collaborative projects together with Ghosn.
The transition has already started with Nissan's Infiniti unit dropping its Q30 and QX30, which were based on the compact car platform of Daimler's Mercedes-Benz unit. Daimler's Smart unit has also teamed up with Geely for development of future models, instead of current partner Renault. And with Geely now Daimler's biggest shareholder, with a 9.7-percent stake, further collaborations are already brewing, including in the area of mobility services.
The auto giants have also collaborated on powertrains and pickup trucks in the past, and they share a plant in Aguascalientes, Mexico.
Kaellenius will also reportedly seek to cut around 10,000 jobs, likely via voluntary separation. Daimler has previously previously ruled out forced redundancies until the end of 2020.
The automaker experienced a 22-percent decline in operating profits in the fourth quarter of 2018, due to a general slowdown in new car sales and rising costs associated with electric and self-driving car technologies.
