Daimler managers are concerned that they will not be able to make a profit this year.
Go deeper with GlobalData
A company insider told Automobilwoche that the main reason is the drop in S-class sales in the US. Profits on smaller Mercedes cars are not nearly as good as they are on luxury models.
In the first half of this year, sales of the S-class family of cars, including the CL and SL, were down 11.8% worldwide. In the US, where demand traditionally is strong demand for highly specified versions, sales are down 23%.
Unicredito automotive analyst Georg Stürzer estimated that the S-Class accounted for 20-25% of Mercedes car group profits before tax (EBIT), Automobilwoche said. This situation was worsened by sales of all models apart from the C-Class family cars off 38.4% in the first half of the year.
Daimler had been expecting 2008 revenues to be higher than in 2007, and it had been aiming for a profit increase. According to Stürzer, the company’s forecasts were ambitious but could still be achieved with strong sales of high specification cars in China and Russia.
