Amid a mild resuscitation of the automotive industry, Daimler AG’ profit for the first three months of 2015 was at a record high with a 41% increase.
There isn’t one particular thing responsible for this record number, but rather two of them: the launch of a series of new models as well as very strong sales of Mercedes-Benz cars. The overall group earnings before interest and tax are said to have moved up to 2.93 billion euros.
Taken separately, the return on Mercedes-Benz cars is up to 9.2% from 7% in the same time interval last year, the main contributors being the passenger cars. With this occasion, Daimler CEO Dieter Zetsche reinstated his desire to overtake the first two premium cars manufacturers (BMW and Audi) in terms of sales by the end of the decade. Currently, Mercedes-Benz sits in third, but it’s a fiercely close battle that could swing Daimler’s way thanks to the recent foray of new models.
The main culprits for this great financial result are the newly launched C-Class and also the small smart urban car, but Mercedes-Benz is also preparing an SUV offensive at the end of the year which should boost sales substantially.
“Our growth strategy, our product offensives and our efficiency programs are paying off,” Zetsche said in the statement. “We have already achieved a lot, we look to the future with great confidence, and we aim to achieve even more.”
Daimler AG needs all the money it can get if it’s to fulfill its 2016 target: investing close to 25 billion euros in new models and building plants for the duration of next year.
These numbers come to show that you can never rest on your laurels and that hard work and perseverance are rewarded at company level, just like they are at personal level.