Daimler bets on Mercedes-Benz to achieve significantly higher revenue this year

Article by Christian A., on February 11, 2015

Daimler plans to introduce a new efficiency program at its Mercedes-Benz Cars division to slow down the acceleration of its cost base as it bids to post record vehicle sales, revenue and profits for this year. Daimler has tried but failed to match the higher margins at BMW and Audi. It also has more employees at Mercedes although its luxury sales are lower than BMW and Audi.

Daimler chief executive Dieter Zetsche remarked that the measures are part of its new "Next Stage" program aimed at helping Mercedes achieve a 10-percent margin target in the midterm as well as offset the structural cost increase coming partly from EUR11.2 billion in plant and equipment investment allocated for 2015 and 2016.

He said the planned growth will be accompanied by increases in fixed costs and net assets, but the planned structural changes will limit the hikes. “We want to sustainably improve the structural competitiveness of the company,” he said.

The program is expected to be run until 2020, when Mercedes aims to exceed BMW and Audi as the largest and most profitable premium carmaker in the world. He said they plan to reach a level of profitability “unprecedented” at Mercedes.

In 2014, Mercedes hikes the proportion earnings before interest and tax to sales to 8 percent, from 6.2 percent in 2013. However, BMW and Audi had higher margins at 9.4 percent and 10.1 percent, respectively.

Daimler has been dismissing claims of a bloated workforce by saying that it needs more workers to build components that rivals outsource.

If you liked the article, share on:

Comments

Recommended

A racing team is claiming that it has managed to break the lap record in its category in the ever-demanding Nurburgring circuit in 2016 while driving a road-going Volvo S60...
by - May 27, 2017
Aside from the officially confirmed BMW 8 Series, the next generation BMW M5 (F90) is getting a lot of attention from the fans, enthusiasts and even potential customers around the...
by - May 27, 2017
Automobili Lamborghini’s preparations for the production of its first ever sports utility vehicle, the new Lamborghini Urus, has reached new grounds as the Italian carmaker is disclosing plans to construct...
by - May 26, 2017
The upscale version of the GMC Yukon body-on-frame sport utility vehicle – the GMC Yukon Denali – has been refreshed for the 2018 model year. It now sports a new...
by - May 26, 2017
The largest gathering of Volkswagen and Audi cars in Europe is underway, and the German premium carmaker is displaying the third model of its G-Tron range at the 2017 Worthersee...
by - May 26, 2017
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