Everything that goes up must go down according to Daimler

Mercedes-Benz has helped Daimler achieve record highs in terms of profit in the fourth quarter of last year. However it is not all good news. Daimler predicts a year of lower profits following a record high.

Mercedes-Benz sales were recorded at record highs last year in the world’s largest automotive markets, China and the United States. This helped Daimler report an increase of 57 per cent in terms of profits made in the fourth quarter.

In total Daimler made a profit of €1.78 billion in the fourth quarter alone. Full year profits stood at €6.03 billion. This represents an increase of 29 % when comparing 2010.

The Euro Zone crisis

As mentioned earlier Daimler believes this year will not as successful. The current Euro Zone crisis spells bad new not only for Mercedes-Benz, but the whole automotive industry within the region. This means there will be a flat market for Daimler this year according to officials within the company. Next year’s profits are very unlikely to be matched.

Better luck elsewhere

Mercedes-Benz recorded its best year ever in 2011 across many worldwide car industries. In China, the company were up by 42 per cent. This allowed them to catch up to the number one luxury producer in the country, their German counterparts Audi. Many were attracted to the C-Class and the younger audience were put off Audi due to their vehicles being associated to the Government. American’s also took well to the C-Class with a 44 per cent increase in sales across the whole country.

A rise in revenue

Revenue in the fourth quarter year rose by 10 per cent to €29.06 billion. This beat original anticipations of the company with Daimler expecting to earn €27.70 billion in revenue.

Mercedes-Benz vans

Mercedes-Benz commercial vans did very well in terms of sales in 2011. The Mercedes-Benz sprinter saw a sharp increase in deliveries across the world. Mercedes-Benz financial services also performed very well by increasing their profit.

With the European region looking like it will not get better anytime soon for the automotive industry, Daimler is planning to explore other avenues. This includes raising the company’s profile in emerging markets such as Asia, Japan as well as North America. Mercedes-Benz is performing very well in these regions. Their brand name will be emphasised more throughout these regions.



Leave a Reply