16 Percent Profit Increase For Daimler In The Third Quarter

16 Percent Profit Increase For Daimler In The Third Quarter

The launch of the CLA led to the best outcome Mercedes-Benz had in recent years. The brand from Stuttgart has surpassed its rivals from BMW and Audi in sales in September, and has had a profit increase in the third quarter.

Daimler has registered a growth of 16 percent before taxes in the third quarter of the year. Compared to the same period of last year, when they received 1.92 billion euros, the third quarter of this year brought the folks from Daimler 2.23 billion euros. Everything is due to the compacts launched during the year, along with the facelift and the new models launched in 2013.

Bloomberg analysts estimated that Daimler will make a profit of 2.09 billion euros in this period but the German company managed to exceed initial estimates. The German corporation income grew by 5.3 percent. As a result of this situation, revenues reached 30.1 billion euros during the current year. The favorable situation of Daimler might further improve, analysts say, because it will launch 13 completely new models in the next eight years, the GLA compact SUV already being included in this list.

Currently, Mercedes-Benz has a range of 23 models, which increased by 4 new models in six years and has received several facelifts and new generation during the period. Deliveries of the CLA compact sedan from the Stuttgart manufacturer has led to the doubling Mercedes-Benz sales in September compared with the same period of last year. Between April and July of this year, Mercedes-Benz has begun the sale of the models CLA, E-Klasse facelift, and S-Class, each making its contribution to the outcome of the brand.

Daimler CEO Dieter Zetsche has set the target for Mercedes to dethrone BMW and Audi as the world’s top-selling luxury-car manufacturer by 2020.
“It’s clear that we want to be the number one premium car manufacturer in product, sales, brand and profitability,” Zetsche said. 

In 2014, Daimler expects to sell 1.5 million Mercedes-Benz cars alone, and the aim for 2015 is to sell 1.6 million Mercedes-Benz.

BMW, Audi and Mercedes are the brands registering record global sales in 2013 based on growth in China, United States and South America to balance off the 6th drop in a row in annual industry-wide sales in Europe.

Meanwhile, Mercedes growth in China had been slowed down by a distribution structure that separated distribution of locally made cars and imported vehicles. Last December, the automaker combined the sales units and in August, Daimler stated it will invest 2 billion euros to double local production capacity to over 200,000 vehicles.

In the last month, Mercedes has highlighted plans to return to Brazil by 2016, and remained loyal of the 67 percent expansion in South African production by the middle of 2014, a part of the strategy to meet emerging market demands with local facilities.

“We will be localizing two highly attractive products with top Mercedes quality, for which we see great potential in the Brazilian premium segment,” said Andreas Renschler, chief of production and procurement at Mercedes-Benz.

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