Daimler Expect Profits to Fall as Mercedes Readies Electric and Autonomous Vehicles
Although Daimler expects sales and revenue to increase this year, its profit growth will likely drop.
That’s because the German automaker is spending on new cars and technologies, focusing mainly on developing electric and autonomous vehicles. The company announced it recently missed quarterly earnings forecasts and reported a lower margin on its Mercedes-Benz cars. Daimler expects 2018’s earnings before interest and tax (EBIT) will be similar to last year’s as a result of the investments.
The company’s EBIT for the fourth quarter through December was 3.47-billion euros, while the return on sales at Mercedes-Benz Cars division fell to 9.7 percent from last year’s 10.7 percent. Unit sales however did rise four percent.
SEE ALSO: Mercedes EQ Electric Crossover to be Built in Alabama
Mercedes is getting ready to launch its new EQ sub-brand of electrified vehicles, and Daimler is refocusing on how Smart will be marketed in years to come. At the 2017 Frankfurt Motor Show, Smart rolled out the Vision EQ ForTwo Concept, a compact electric vehicle that’s built for car sharing. It is the first project to adhere to Daimler’s “CASE” corporate strategy, which stands for Connected, Autonomous, Shared, and Electric.
[Source: Reuters]
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Jason Siu began his career in automotive journalism in 2003 with Modified Magazine, a property previously held by VerticalScope. As the West Coast Editor, he played a pivotal role while also extending his expertise to Modified Luxury & Exotics and Modified Mustangs. Beyond his editorial work, Jason authored two notable Cartech books. His tenure at AutoGuide.com saw him immersed in the daily news cycle, yet his passion for hands-on evaluation led him to focus on testing and product reviews, offering well-rounded recommendations to AutoGuide readers. Currently, as the Content Director for VerticalScope, Jason spearheads the content strategy for an array of online publications, a role that has him at the helm of ensuring quality and consistency across the board.
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