German Handelsblatt: Mobility: Investors demand luxury returns: Daimler boss wants to increase margin to 14 percent 003563

Electric sedan

Mercedes-Benz Sindelfingen plant: Expensive vehicles, fewer emissions, is the plan of Daimler boss Ola Källenius. The Mercedes-AMG EQS 53 4MATIC electric sedan has been rolling off the assembly line since December 15.

(Photo: Daimler AG)

Munich, Berlin More luxury equals higher profit. With this formula, Daimler boss Ola Källenius is realigning the car manufacturer. Instead of the margin targets that otherwise apply in the automotive industry, he strives for the profit margins of a luxury company like LVMH. The Swabians will not achieve its results so easily – they are beyond the 20 percent – but Källenius wants to increase the goals.
Specifically, he is aiming in the medium term to increase the margin with the sale of cars and vans to 14 percent or more when the market conditions are good, as the Handelsblatt has learned from corporate circles. In the short term, the current upper limit of twelve percent is likely to remain unaffected, but in the course of the coming year Daimler could offer its shareholders the prospect of a more ambitious target corridor for the following years as part of a capital market day, according to corporate circles. However, this has not yet been decided. Daimler itself did not want to comment on “speculation”.

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