Mercedes-Benz instrumental in Daimler’s fourth quarter profits
Mercedes-Benz commercial vehicles and vans selling well
Mercedes-Benz vans, especially the Sprinter played it’s part in help profits to increase. The van has become a household name throughout the world with orders being driven up by the vehicle’s economical, practicality and performance attributes.
Net profit higher than expected
Net profit read at €1.78 billion during the fourth quarter alone. This was higher than the anticipated figure from Factset.
2011 yearly profit difficult to match
Overall yearly profits were at record highs too but they will not reach higher levels this year according to Daimler. The Euro Zone crisis is currently affecting the automotive industry in a very negative manner.
Mercedes-Benz selling well in China and America
Mercedes-Benz sales were up by 44 per cent in China, the world’s largest automotive market and 44 per cent in the United States, the world’s second biggest automotive market. The race to become North America’s leading luxury car producer was intense. Neither BMW nor Mercedes-Benz released sales figures until the latest moment possible. It was BMW who came out on top in the end, but the margin between the two German companies was not very wide.
Mercedes-Benz looking at other ways of avoiding the European markets
In order to conquer the awful European market, which is in sharp decline, Daimler are looking for their Mercedes-Benz brand to target emerging Asian markets such as India. The markets of Japan and North America will also be heavily relied upon for a sharp increase in demand.
Customer confidence has been greatly reduced across Europe. Debts in many countries have called for banks to stop lending money for cars. Governments are currently struggling to figure out a way to conquer the current Euro Zone crisis.
Sales expected to beat 2011 target
Overall Daimler sales should beat the 1.38 million units sold in 2011, despite fears of a struggle.
Daimler’s yearly net profit is recorded at €6.03 billion. This was up from €4.49 billion in 2010.
Daimler’s profits in America will be shared amongst employees at an average of $5,442. Shareholders will receive 40 per cent of net profit with a dividend of €2.20, which is an increase of €1.85 from 2011.