Lower profits but increased revenues for Mercedes-Benz

The luxury car market is hitting record sales numbers despite a global economic downturn. Mercedes-Benz is a fundamental factor behind that, hitting personal records and increasing their popularity worldwide.

Daimler hit profit

Daimler, Mercedes-Benz’s holding group reported a profit increase of 20 per cent, hitting an astonishing £1.2 billion.

Marketing campaign for new models

As strange as it may sound to some, Mercedes-Benz’s profits have dipped. It may not come as a surprise to those who are up to date with Mercedes-Benz’s strategy.

A lot of money has gone towards the release and marketing of new models. The release of the new C-Class has put Mercedes-Benz led to a huge campaign, giving the company huge expenses. This is part of a long term strategy at Mercedes-Benz. Short term losses will mean future profits.

Revenue up by 9 per cent

Revenue for the German car giant has increased by 9 per cent to an estimated €27.01 billion. Mercedes-Benz also managed to sell 502,086 across the world which is a fantastic record. Daimler’s shares have recently increased by a fantastic 3.2 per cent it is estimated.

Mercedes-Benz truck division

The truck segment of Mercedes-Benz is currently in the same boat as their car division. They spent more on newer truck models in an attempt to gain higher future profits. Another example of executing a long term target was that Daimler halted production in order to increase production capacity as a plant in Beijing.

313,902 sold in the first three months

Mercedes-Benz sold 313,902 cars during the months of January, February and March this year. Surprisingly that also included an increase in sales in the Western Europe region where the economy has been crumbling.

Improvement year upon year

Dieter Zetsche, the Head of the Mercedes-Benz division said that this year has been “A strong quarter”. He continued to say “Despite higher investment in future growth and a challenging market environment, we succeeded in surpassing the very good prior-year results”

Despite a fall in profits at present, Mercedes-Benz is confident that they will reach the same amount of profit as last year.

It is not only the company’s sales that have performed wonders; it is also Mercedes-Benz’s financial services division. Their earnings increased by 7 per cent. Previously the division recorded a loss of €131 million but have now recovered to make a profit of €86 million.

 

 

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