Mercedes-Benz to keep margin target of 10 percent, says Daimler CEO
By Andrew C., 27 Aug, 2010. 0 Comments
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A long-term EBIT profit margin target of 10% for the Mercedes-Benz Cars division remains "realistic," according to Daimler AG CEO Dieter Zetsche. He says however that it is unclear when the company will reach it. He explains that since the environment is unclear as well, it would be dishonest to name a date. The two challenges that the company is facing are said to be the economic crisis and the costs to prepare for a CO2-free world. Although vehicle sales at Mercedes-Benz Cars dropped 13.2% in August, higher unit sales are expected at the division in the next months. When asked about the issue on the two sides" reluctance to work together, Zetsche responded, "This is a wrong impression. We are cooperating much more ... than noticed by the public." Last May, Zetsche said that the company would like to expand plans for cooperation "as equal partners" with BMW aside from an agreement to bundle the purchasing of components.
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