Because the restructuring plan exceeds expectations, Daimler will sell the French Smart factory

Because the restructuring plan exceeds expectations, Daimler will sell the French Smart factory
On July 6, Beijing time, according to a report on the European Automotive News website, Daimler will seek to sell its plant in Hambach, France. The automaker is undergoing a deeper reorganization beyond expectations to overcome the new model. The impact of the coronavirus epidemic.
Daimler, which owns the Mercedes-Benz and Smart brands, has used derivatives of Smart electric and internal combustion engines at the Hambach plant. In 2017, the plant produced more than 80,000 vehicles.
The company said in a press release last Friday that this move will bring about a one-time negative impact on the second quarter results worth about 500 million euros.
Daimler CEO Kang Linsong pointed out in the press release: “The economic impact of the new crown pneumonia epidemic is creating new framework conditions. In this case, we are optimizing our global production network.”
It is worth mentioning that Smart production will be transferred from France to China. Previously, Daimler said last year that it would produce the next generation of Smart electric vehicles through a joint venture with Geely.
Just as the Hambach plant was being sold, the European automotive industry was facing a situation of overcapacity and a sharp drop in demand for new cars.
The plant was put into operation in 1997 and currently has approximately 1,600 employees. In 2018, Daimler stated that it would invest 500 million euros in Hambach to produce a compact electric vehicle under the new EQ electric sub-brand of Mercedes and a battery-powered derivative of Smart ForTwo.
Kang Linsong warned earlier last week that he would have to undergo a more painful reorganization due to the impact of the new coronavirus. He revealed that on top of the restructuring plan announced in November, he plans to “significantly” cut salaries, including the abolition of more than 10,000 positions.