Daimler’s New CEO Ola Kallenius Warns Shift to Electric Cars Will Be Painful

Daimler AG’s new CEO warned there will be no quick fix for the automaker’s struggles to adapt to an era of self-driving, electric cars.

After two rapid-fire profit warnings earlier this year, Ola Kallenius said Nov. 14 that the German icon’s earnings would remain under pressure for the next two years.

He laid out a plan to gradually lift margins by capping investment and cutting jobs to save more than 1.3 billion euros ($1.4 billion).

“To remain successful in the future, we must therefore act now and significantly increase our financial strength,” Kallenius said in his first big major strategy presentation since taking charge in May. “Comprehensive measures to increase efficiency are needed “in all areas.”