By Kim Richters 
 

Daimler AG on Thursday confirmed that it will spend over 70 billion euros ($84.82 billion) on research and development as well as on property, plants and equipment from 2021 through to 2025, saying it would accelerate the transformation towards electrification and digitization.

While the German car maker plans to spend most of the investment on its Mercedes-Benz flagship car brand, capital-expenditure and research-and-development costs for the brand "will decrease during this period and will be more than 20% lower in 2025 than in 2019." Daimler already announced its plan to slash costs at Mercedes-Benz in October.

Additionally, the company said Thursday that its management and general-works council agreed to create a "transformation fund" with EUR1 billion that will run until 2025.

The fund "will mainly be used to promote the further development of future technologies and to safeguard employment during the transformation at the German sites," the company said. Details for this will be agreed in the first quarter next year.

 

Write to Kim Richters at kim.richters@wsj.com

 

(END) Dow Jones Newswires

December 03, 2020 09:32 ET (14:32 GMT)

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