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HomeAutoElectric cars and expensive models have more than doubled Mercedes-Benz profits

Electric cars and expensive models have more than doubled Mercedes-Benz profits

Luxury car makers have outperformed mass-market competitors in the face of component shortages because not only are they producing fewer cars, they are also suffering less from rising costs. Mercedes-Benz profits more than doubled last year, from 6.8 to 13.9 billion euros, and this year the brand will also focus on expensive models and electric vehicles.

According to Reuters , the impressive performance of profit before taxes and interest was accompanied by a reduction in the number of deliveries of Mercedes-Benz cars by 5%. Sales of flagship models brought the German automaker 30% more revenue than a year earlier, while passenger electric vehicles increased core revenue by 64%.

Among the immediate development priorities, Mercedes-Benz management identifies three areas: scaling the electric vehicle business, accelerating the development of proprietary software, and building a business in the luxury segment. At the same time, the company will try to optimize costs and establish channels for the supply of components. Among other things, interaction with suppliers of semiconductor components should be deepened.

Mercedes-Benz, which finally switched to using this trade name from Daimler on February 1, expects a slight increase in revenue for the current year, since the shortage problem will lose its relevance, although it will not go away completely. In December last year, Daimler Truck’s cargo division gained structural independence, which allowed it to increase profit before taxes by 9.2 billion euros at a time.

source: Reuters

 

 

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