Daimler will cut out traditional parts makers in order to fund a software development push that will involve hiring thousands of coders to build an operating system that rivals Tesla’s.
The Mercedes-Benz owner would buy fewer electronic components and “replace supplier development costs with personnel, building and computing costs”, Ola Kallenius, the company’s chief executive, told the Financial Times.
“Down the road, once we have gotten farther in this endeavour, I believe we could actually operate at a lower fixed cost level,” the Swedish boss added.
“We will pay less money to suppliers and then employ people in other places.”
The German group, which is in the middle of a painful restructuring as it struggles to pay for a late foray into electric vehicles, wants to own more of the complex technology that powers modern cars.
“We want to have one comprehensive operating system that goes from our