Mercedes parent firm's net profits fell 28% in 2018 due to “strong headwinds" and higher costs are predicted in 2019
6 February 2019

Daimler boss Dieter Zetsche has said Brexit is “one of the most important and crucial factors” dictating the firm’s recovery in 2019 after a substantial fall in profits last year.

Despite revenues rising by 2% to £147 billion in 2018, Mercedes-Benz's parent company reported net profits down 28% from £9.3bn to £6.7bn last year. Operating profit also dropped from £12.6bn to £9.8bn, while operating margins fell by more than 23% by the fourth quarter.

Speaking at the firm's annual press conference, Zetsche cited “strong headwinds”, such as trade disputes harming Chinese imports from the US, supply chain issues, problems caused by the new WLTP emissions legislation and greater raw material costs.

He claimed the trading environment “remains extremely challenging”, with raw material costs and exchange rate issues causing further concern. 

When asked about the potential effects of the UK’s decision to leave the European Union, Zetsche said: “Of course Brexit is one of the most important and crucial factors”.

“It could put the world economy into an uncertain situation”, he continued. “The UK is the world’s fourth biggest market for us, and if a no-deal Brexit became a reality, the market in Great Britain would be very much adversely affected. Foreign exchange relations would also become unfavourable. It’s a big part of our risk portfolio”. 

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Earnings in 2019 will also be negatively impacted, Zetsche said, as Daimler invests heavily in its electrified model offensive. The firm plans to offer electrified variants of all of its cars (across Mercedes and Smart) by 2022, with 130 variants including everything from 48V mild hybrids to electric vehicles. It has also invested £17.6bn in battery cells to cover this expansion until 2030. 

However, the company still has a strong financial footing with large cash reserves, while both revenue and overall car sales increased slightly last year. The biggest positive was an 11% growth in its Chinese operation, despite a general market downturn in the country. 

Daimler is also continuing its transformation into a “provider of mobility services”. It has renamed its financial services operation Daimler Mobility, while last year it merged its urban mobility service offerings (including car sharing and ride hailing) with BMW's.

This year, Daimler plans to trial fully autonomous shuttle services in San Jose and San Fransisco, US, and will invest £440m to get “highly automated” trucks on the road within the next 12 months. A series of autonomous and electric Mercedes vans is also on the cards. 

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Brexit is a problem for UK automotive, whatever your political stance

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Comments
32

6 February 2019

Include crap previous gen A-Class that made have sold, cheaper, but has also lowered customer expectations of what Mercesdes are about. Oh and that T word, Tesla, taking a large market chunk of their US sales

 

typos1 - Just can’t respect opinion

6 February 2019
xxxx wrote:

Include crap previous gen A-Class that made have sold, cheaper, but has also lowered customer expectations of what Mercesdes are about. Oh and that T word, Tesla, taking a large market chunk of their US sales

 

Other factors? You may want to convey Alternative Facts (Fakes News)?Well I have some datapoints to share about that T word, Tesla, you claim is taking a large chunk of Mercedes-Benz US sales.Let's see January 2019 US sales:

Tesla Model S - 875 unitsMercedes-Benz E/CLS - 3258 units

Tesla Model 3 - 6500 unitsMercedes-Benz C-class - 4676 unitsBMW 4-Series/3-Series - 4068 units (and that includes a runoff model...)

Tesla Model X - 950 units

So, Tesla is doing great you claim, so much so that now Tesla switched to cut car prices on a monthly basis... they might be finding A Lot of customers then.

7 February 2019
coolboy wrote:

xxxx wrote:

Include crap previous gen A-Class that made have sold, cheaper, but has also lowered customer expectations of what Mercesdes are about. Oh and that T word, Tesla, taking a large market chunk of their US sales

 

Other factors? You may want to convey Alternative Facts (Fakes News)?Well I have some datapoints to share about that T word, Tesla, you claim is taking a large chunk of Mercedes-Benz US sales.Let's see January 2019 US sales:

Tesla Model S - 875 unitsMercedes-Benz E/CLS - 3258 units

Tesla Model 3 - 6500 unitsMercedes-Benz C-class - 4676 unitsBMW 4-Series/3-Series - 4068 units (and that includes a runoff model...)

Tesla Model X - 950 units

So, Tesla is doing great you claim, so much so that now Tesla switched to cut car prices on a monthly basis... they might be finding A Lot of customers then.

Oh dear you really are clueless by talking about just one months worth of sales.  Why not take Tesla US Dec 18 sales over 32,000.  25,000 Model 3 sales alone, way ahead of the C class.  Actually, were you the clown who thought C class sales would increase in the States when they start making them in Mexico? 

Model 3 units were being diverted to Europe in Jan.  I suggest you learn about statistics before reposting fake news

typos1 - Just can’t respect opinion

7 February 2019
xxxx wrote:

coolboy wrote:

xxxx wrote:

Include crap previous gen A-Class that made have sold, cheaper, but has also lowered customer expectations of what Mercesdes are about. Oh and that T word, Tesla, taking a large market chunk of their US sales

 

Other factors? You may want to convey Alternative Facts (Fakes News)?Well I have some datapoints to share about that T word, Tesla, you claim is taking a large chunk of Mercedes-Benz US sales.Let's see January 2019 US sales:

Tesla Model S - 875 unitsMercedes-Benz E/CLS - 3258 units

Tesla Model 3 - 6500 unitsMercedes-Benz C-class - 4676 unitsBMW 4-Series/3-Series - 4068 units (and that includes a runoff model...)

Tesla Model X - 950 units

So, Tesla is doing great you claim, so much so that now Tesla switched to cut car prices on a monthly basis... they might be finding A Lot of customers then.

Oh dear you really are clueless by talking about just one months worth of sales.  Why not take Tesla US Dec 18 sales over 32,000.  25,000 Model 3 sales alone, way ahead of the C class.  Actually, were you the clown who thought C class sales would increase in the States when they start making them in Mexico? 

Model 3 units were being diverted to Europe in Jan.  I suggest you learn about statistics before reposting fake news

I am, for sure, a lot more elevated individual than you are, I am not a clown. You suggest that Tesla is already eating Mercedes-Benz lunch, but I just pointed Tesla January 2019 US sales are a diaster, no matter how many price cuts Tesla Circus bring on board. And Teslas sent to Europe aren`t that much either... The issue with Tesla is Mercedes-Benz is selling millions of cars, including more than 400 G class in US for January 2019 and besides that, Model S is an old vehicle from 2012 that can`t have workable automatic wipers... at least on the same level of dependability a crap Ford Fiesta or Vauxhall Corsa can have. Don`t cry, next month Tesla will again cut prices for all of you, fanboys. Meanwhile you can enjoy your very high quality over-the-air updates for your fantastic Full Self Driving and your promised hardware 3. Those are not Fake News, those are Tesla lies.

 

6 February 2019

If this was JLR then this forumn would be alight by now.  

Thought I'd mention it again as I've done so a few times this year whenever the Tesla stories appear, Daimler share price down from 70 euros to 51 over the course of a year and down 3% today

typos1 - Just can’t respect opinion

6 February 2019

 ....maybe because Volvo are making cars people want?

Steam cars are due a revival.

FM8

6 February 2019
Thekrankis wrote:

 ....maybe because Volvo are making cars people want?

...and heavily discounting them to get people in um.

6 February 2019
Thekrankis wrote:

 ....maybe because Volvo are making cars people want?

And Volvos owner Geely, is now the largest shareholder in Daimler-Benz. I for 1 am glad to see Volvo doing well, and the German motor industry taking a hit, its about time, if it wasnt for the badge snobbery of certain individuals in the UK, perhaps companies like Ford would still be producing vehicles in the UK, and the perfectly acceptable Mondeo and Insignia would still be far more popular than the 3 series, the C-Class or the A4.. 

6 February 2019

Another sign, as if you needed one, that Brexit is going to harm Britain.

 

And what for?   Blue passports.

 

6 February 2019
Symanski wrote:

Another sign, as if you needed one, that Brexit is going to harm Britain.

 

And what for?   Blue passports.

 

 

I knew you'd be here, being the sanctimonious little prick again.

Perhaps one day you'll grow up enough to see that the majority in this country have done you good. And if not, well then you'll just have to ship yourself out to your beloved EU, because you sure won't be missed here.

: )

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