The head of the Mercedes division of DaimlerChrysler AG said on Wednesday he expected a “high level” of profit in 2004, according to Reuters.
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Mercedes chief Juergen Hubbert, speaking to Reuters at the Tokyo Motor Show, was asked where he thought profit for DaimlerChysler and its Mercedes arm would go in 2004.
“At a high level,” he reportedly replied, declining to be more specific.
Reuters noted that a day earlier, DaimlerChrysler reported a sharper-than-expected 19% fall in operating profit for the third quarter, although it still aims to post a full-year profit of about €5 billion ($US5.83 billion), down from €5.8 billion in 2002.
Hubbert reportedly said currencies have so far posed no problem for DaimlerChrysler, adding that the company was hedged at “relatively high levels” for much of 2004.
Hubbert told Reuters he viewed the global vehicle market as “slightly increasing”, with some improvements seen in the US and European markets.
“But the open question is the German market,” he told Reuters, adding that political reforms and an improvement in consumer sentiment were key to getting the economy back on its feet.
On Mercedes’ sales in Japan, Hubbert said he was satisfied, projecting sales to reach 40,000 units this year, the report added.
Although Mercedes has lost out in recent years to Volkswagen AG as the top-selling foreign brand in Japan, Hubbert told Reuters he was not concerned as long as Mercedes remained the top luxury seller.
