Daimler AG’s profits jump, still lower than BMW Group’s increase

2012 Mercedes-Benz CLS63 AMG

Mercedes-Benz’s parent, Daimler, is unfortunately struggling to keep up with the current world’s No. 1 maker of luxury cars, BMW, in terms of sales. Not too long ago, Mercedes-Benz announced that it has raised its sales target by 50,000 cars, which is still lower than BMW’s increase of 100,000 units.

“Right now, the delta to Daimler’s peers is widening,” said Arndt Ellinghorst, a Credit Suisse analyst in London. “They have to make sure that changes. That’s why the stock is underperforming.”

BMW even increased its 2011 sales forecast from 1.5 million vehicles to 1.6 million, very much exceeding Mercedes’s target by even 2015.

In a statement responding to these reports and findings, a spokesperson from Daimler said that capacity expansion could’ve helped a lot and that said, they’re planning on investing in a new plant in Hungary to meet the demands from the Asian markets.

Additionally, Daimler reported on July 21st that it will be investing more than $2 billion on their Tuscaloosa, Alabama plant, where the M-, R-, and GL-Class SUVs are made.

– By: Chris Chin

Source: Automotive News