Since 1997, Mercedes has been sharing a part of the profits with its employees. In 2022, about 100,000 workers earned an extra €6,000 as a "token of respect" after a profitable 2021. Following last year's solid performance, the three-pointed star is happy to announce a record profit-sharing bonus of €7,300. At current exchange rates, that works out to just over $7,900. The fat bonus will be handed out to approximately 93,000 eligible employees.
The company's management and General Works Council have agreed to pay this special lump sum bonus to workers in Germany. They'll be getting the money together with their April pay. Interestingly, the sum is even higher than the current maximum payment cap of €6,465. Beginning with the 2023 financial year, a new system for the calculation of the profit-sharing bonus will be established. Mercedes says the new strategy "will be aligned with the existing system for the management."
Mercedes-Benz CLA-Class Shooting Brake
These generous bonuses come at a time when Mercedes has agreed to spend a whopping $47 billion by the end of the decade to fund its electric lineup. The German luxury brand intends to offer only EVs “where market conditions allow” in 2030. To get there, it’s engineering several new platforms, such as MMA for compact cars, MB.EA for medium to large vehicles, and AMG.EA for performance models. In addition, VAN.EA will underpin minivans and commercial vehicles.
Together with its partners, Mercedes will build no fewer than eight battery factories to support its ever-growing electric lineup. It intends to lower the development budget for combustion engines by 80 percent until 2026, which will have direct repercussions on the workforce to cut costs. For the same reason, the compact car lineup will be simplified, with the A-Class Hatchback and Sedan believed to be going away, along with the B-Class minivan.
Mercedes projects hybrids and electric cars will account for half of its total annual sales by 2025, five years earlier than initially estimated.