Analysts expect Daimler to post 8.3% operating margin in 2011

Article by Anita Panait, on February 9, 2012

German luxury carmaker Daimler is expected to report an operating margin of 8.3% in 2011, according to the average estimate of 23 analysts surveyed by Bloomberg News. If the average estimate comes true, the 8.3% operating margin would be Daimler’s best since it parted ways with Chrysler five years ago.

The estimate puts Daimler, which owns Mercedes-Benz, at third place among German luxury carmakers, behind Audi and BMW. The same analyst survey says Audi and BMW are expected to post operating margins of more than 10%.  General Motors is estimated to post a 5% operating margin in 2011, while Italian carmaker Fiat, which now owns Chrysler, is expected by analysts to record a 4% operating margin.

The larger operating profit for German carmakers is attributed to the fact that competition is stiff among the world’s largest luxury carmakers. According to the 23 analysts surveyed by Bloomberg News, the same trend is expected in 2011.

"The gap in Europe will widen to the advantage of the Germans" this year, said Stefan Bauknecht, a fund manager with Deutsche Bank AG's WS. Bauknecht noted that "Fiat and the French carmakers have the wrong products and the wrong market exposure,” adding that they would be under pressure from Asian carmakers like Toyota and Hyundai. Daimler, Audi and BMW all sold a record number of units in 2011, thanks to their Chinese expansion and the rebound in U.S. spending.

BMW topped the luxury car global market in 2011 with 1.38 million units sold, followed by Audi with 1.3 million, and Daimler’s Mercedes-Benz with 1.26 million. German carmakers are expected to take a hit from the current European debt crisis, but it is not enough to stunt their growth. BMW, Volkswagen and Daimler are expected to grow faster than the global market this year, with support from updated models like the BMW 3-series, Audi A3 and Mercedes SL.

Topics: daimler

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

More positive news has been pouring in before the year ends. For those who have been waiting to hear the latest word on Toyota 86, we have some great news....
by - December 10, 2016
Hyundai is making the green vehicle race more competitive by offering three powertrain types -- pure electric (EV), hybrid (EV plus combustion engine) and plug-in hybrid (PHEV) – in one...
by - December 9, 2016
Although specs for the new Renault Megane had already surfaced several weeks ago, we didn’t know that the company has cooked up something new. Aside from the 200hp gasoline, Renault‘s...
by - December 9, 2016
For the first time in fifty-eight years, Infiniti registers its first US-Spec Q60 Coupe in Cuba. American products have not been allowed entry into Cuba for six decades. But it...
by - December 9, 2016
Chevrolet has already given out the pricing for some of its 2018 Equinox models. Not only will the new Equinox be available in both the US and Canada, it is...
by - December 9, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries