German automaker Daimler is planning to trim down its spending on information technology (IT) by EUR150m each year by 2016.
Daimler is reportedly facing problems to counterpart its opponents' scale and efficiency in smaller car models, in addition to their achievement in China.
Reuters cited German weekly Automobilwoche's report as saying that the company was on track to reach the target and it would take back the IT systems that were earlier outsourced to SAP under the plan.
German automaker is also planning to cut its annual expenditures by EUR2bn for its Mercedes-Benz unit by late 2014, while it is aiming for the bulk of the cost cuts during 2013.
According to another report from German weekly Focus Daimler's Mercedes-Benz plants in Germany were less efficient compared to its manufacturing facilitates outside the country.
During May 2013, Mercedes-Benz reported a 7.3% rise in sales to 121,360 units, compared to the corresponding month in 2012.
