Daimler Said to Target $1.3 Billion in Cuts to Boost Profit

Daimler AG, the world’s third-largest maker of luxury cars, is planning to cut annual costs by at least 1 billion euros ($1.31 billion) in response to the region’s deteriorating auto market, a person familiar with the matter said.

The spending reductions are aimed at boosting the German automaker’s profitability, said the person, who asked not to be identified discussing internal plans that are not yet public. Florian Martens, a Daimler spokesman, declined to comment.