GM Inside News Forum banner
1 - 17 of 17 Posts

·
Registered
Joined
·
3,906 Posts
Discussion Starter · #1 ·
FRANKURT (Bloomberg) -- Daimler reported a 21 percent increase in third-quarter profit as deliveries of the top-of-the line Mercedes-Benz S class more than doubled.

Operating profit rose to 2.79 billion euros ($3.53 billion) from 2.3 billion euros a year earlier, Daimler said in a statement today.

Profit at the Mercedes-Benz Cars division, which also includes the Smart brand, widened to 8.5 percent of revenue from 7.3 percent in the third quarter last year, the highest in more than two years.

Mercedes recorded its best-ever month for sales in the company's 88-year history in September, benefiting from new models and growing demand in China.

"Our strategy is paying off," CEO Dieter Zetsche said in the statement. "We are growing profitably and look to the future with optimism also beyond the full year."

Mercedes is adding the AMG GT sports car, which debuted at the Paris auto show, and more luxurious versions of the S class including a $1 million six-seat Pullman variant to bolster its high-end image. At the same time, the brand is expanding its lineup of more affordable models, such as the GLA compact sport-utility vehicle, as it seeks to topple BMW from the top spot in the luxury-car segment by the end of the decade.

"Mercedes-Benz has a fresh model lineup, which is giving the brand a lot of momentum," Frank Schwope, an analyst at NordLB in Hanover, Germany, said. "We’ll probably continue to see more profitable quarters through most of next year."

Group earnings before interest and tax (EBIT) were 3.73 billion euros ($4.72 billion), including a 1.01 billion-euro gain from the sale Daimler's 50 percent stake in Rolls-Royce Power Systems. EBIT at Mercedes-Benz Cars, which accounts for about 42 percent of the group total, increased 32 percent to 1.58 billion euros ($2 billion) in the third quarter.

Daimler Trucks posted a 17 percent rise in third-quarter EBIT from ongoing business as strong sales in the countries belonging to the North American Free Trade Agreement helped to offset a slump in Europe.

The company's third-quarter revenue advanced 10 percent to 33.1 billion euros.

2014 goal

Daimler stuck to its goal of significantly increasing 2014 operating profit, or earnings before interest and taxes from ongoing business, from last year’s 7.9 billion euros on "significant" gains in vehicle deliveries and revenue.

The company, which is also the world’s biggest truckmaker, today forecast industrial cash flow of significantly more than last year’s 3.2 billion euros.

Mercedes deliveries rose 13 percent to 1.2 million vehicles in the first nine months, faster than at BMW and No. 2-ranked Audi. Sales in the third quarter rose 9 percent to 431,000 vehicles, the highest ever for the company.

Daimler is the first of the German premium automakers, to release third-quarter results. BMW is scheduled to report third-quarter earnings on Nov. 4, while Audi parent Volkswagen will release figures Oct. 30.

In previous quarters, the profitability of Mercedes passenger cars has lagged that of peers. In the second quarter, for example, BMW's quarterly automotive EBIT margin, the best profitability gauge for peer comparison, came in at 11.7 percent, exceeding the 7.9 percent achieved by Mercedes-Benz, and 9.9 percent by Audi.

Juergen Pieper, automotive analyst at Metzler bank, questioned whether Daimler has enough momentum to catch BMW and Audi. "I think Daimler has peaked. The margin in the cars division is really good for Mercedes standards, but it is not where it should be for a leading premium manufacturer."

Pieper also said he was concerned about the company's exposure to the trucks market, which is heavily dependent on shaky emerging markets.

Global forecast

Daimler today said it now expected world-wide demand for passenger cars to grow around 3 percent, in what amounts to a further downward revision of expectations. Earlier this month, Zetsche had already cut his forecast for global car market growth this year to 3-4 percent from 4-5 percent, as the Ukraine-Russia crisis dented demand and growth slowed in markets such as Brazil and Argentina.

Alongside the investment in new vehicles, Daimler is looking to cut operating costs at Mercedes by about 2 billion euros and expects 80 percent to 90 percent of those savings to be achieved by the end of 2014, the company said today. The Fit for Leadership program is part of efforts to achieve a long-delayed goal of lifting the car division’s margins to 10 percent.

The carmaker said on Oct. 21 that it sold its stake of about 4 percent in California-based electric-car producer Tesla Motors in a deal that will generate about 600 million euros in cash to bolster Daimler’s operations.

The disposal ends a five-year equity tie-up between the manufacturers, as Tesla evolves into a stronger competitor for Mercedes. Some cooperation will continue, with Tesla supplying powertrain components to the Daimler brand.

Daimler is investing in modernizing its production facilities. In total, the company will spend 22 billion euros on plants, equipment and research and development in 2014 to 2015, Chief Financial Officer Bodo Uebber told journalists.

Daimler will focus on strengthening its core business rather than making large acquisitions, Uebber said, declining to elaborate on whether this precluded smaller acquisitions such as taking a stake in motorbike maker MV Agusta.

LINK

RWD cars are no good Rupert Trooper said so profits up +21%, FWD OpelSSss $20 billion losses the- way-to-go? Mmmmm
 

·
Registered
Joined
·
3,906 Posts
Discussion Starter · #3 · (Edited)
Yes - Mercedes-Benz is in real trouble with it's model expansion plans !!!

OS - RWD is fine for premium sector but not for mainstream - get used to it, mainstream and budget customers don't care which wheels are driven.
LOL

FWD is a cheap n' nasty compromise Rupert, Opel is still losing GM big money using expensive German labor at Rüsselsheim making no-profit on the roof FWD comprises, If they did not have a sugar daddy mug like GM suckers to finance their $20 billion losses in Europe Opel would should have be buried a decade ago, no bank in the world would ever touch lend Opel money if they looked at Opel financial books.

Funny how you discard RWD and use "Premium" instead to describe it, not a FWD compromise like Opel use. Mercedes are in trouble LOL Mmmm Mercedes Benz profits up +21% thats terrible Rupert, gosh Opel are on a roll really $20 billions the way-to-go.

It's funny how all the RWD "Premium" drivetrains are making money, and all the low rent FWD compromise drivetrains are losing big money in Europe. Opel need to offer more than just compromises, Ford of Europe's most profitble years in history were between late 60's to mid 70's when all they offered was premium drivetrains funny that.
 

·
Registered
Joined
·
3,906 Posts
Discussion Starter · #5 · (Edited)
Perhaps GM should abandon FWD globally. Just build SS, Camaro, Corvette, Cadillac and body-on-frame SUVs - oh, they won't sell many outside North America!
Missed the Silverado/GMC pick-up truck that very much keep GM afloat as a company Rupert. BMW were only selling crap unstable 3-wheelers after WW2, so l guess it's what you make of yourself as brand, nope a nice mixture of drivetrains would serve Opel well Rupert, l like the Opel Mokka thats gonna generate some much needed profit on the roof, l think folk do warm to Opel when they offer the right cars, Opel are like Kodak who were to focused on the lower end of the camera market where no money was being made that got wiped out by the camera on smart phones, they should have reacted gone more up market. I can't see nothing wrong with Opel doing a fuel efficient RWD car, going for the high end of the car market with a reasonable down to earth price that like the Mokka would make a nice tidy profit on the roof for GM at the same time, it just seems a more sustainable way of running a car company than going forwards looking to the long term future, rather after the bottom end of the no-profit FWD car market.

Nothing wrong with Opel they are well engineered cars, just that they are to focused on the Kodak lower end of the car market, if the Chinese automakers go global move in and eat the Kodak market for breakfast in the future, your gonna be better off sitting of at DSLR RWD car end of the market. I personally can't see what harm adding a fuel efficient higher profit yield RWD car to Opel line-up will do, like the higher end AWD Mokka it would bring in generate more revenue, making Opel a more sustainable future less of a burden on General Motors

If BMW had stayed stuck in a 3-wheeled groove after WW2, like the huge loss maing FWD groove like Opel are at the moment, would BMW have been making billions in profits every year on 3 Series & 5 series today, they would probably have been a upmarket Reliant Robin brand today?

Nothing wrong with aiming high with at least 1 fuel efficient RWD car at Opel.



It's what you make of yourself, Opel are aiming low like Kodak.
 

·
Registered
Joined
·
7,902 Posts
Missed the Silverado/GMC pick-up truck that very much keep GM afloat as a company
Yeah - I forgot that GM has to rely on commercial trucks sold as passenger vehicles to keep it's volumes and profits up.

"Opel are aiming low" - that's rich given that Chevrolets aren't built as well and Buick seem to get all their models from Opel.

The European mainstream market has been shrinking for half a century, about the same time as the premium market has been expanding - Opel have suffered just as Ford have - during that same timescale ALL mainstream manufacturers in Europe have switched to FWD or were always FWD.

The last RWD Fords in Europe, Sierra and Granada/Scorpio, flopped badly, trounced by FWD Opel/Vauxhalls, Ascona/Cavalier/Vectra - but that was in the days when GM Detroit left Opel alone - it's that interference that holds Opel back.
 

·
Registered
Joined
·
13,172 Posts
That little CLA seems to have paid off handsomely for Mercedes....

The little cuv based off the same chassis should do well too.


Some say Mercedes *******ized its brand.....but in Europe Mercedes has always had a reputation that included taxi cabs,,,,so I see no future damage with a CLA type vehicle...
 

·
Registered
Joined
·
3,906 Posts
Discussion Starter · #8 · (Edited)
Yeah - I forgot that GM has to rely on commercial trucks sold as passenger vehicles to keep it's volumes and profits up.

"Opel are aiming low" - that's rich given that Chevrolets aren't built as well and Buick seem to get all their models from Opel.

The last RWD Fords in Europe, Sierra and Granada/Scorpio, flopped badly, trounced by FWD Opel/Vauxhalls, Ascona/Cavalier/Vectra - but that was in the days when GM Detroit left Opel alone - it's that interference that holds Opel back.
Sierra & Scorpio were two of most pig ugly dull anonymous anodyne cars Ford ever did make you ever did see, so anonymous, no descript an non-entity nobody knew they ever existed, l am not surprised to be honest Rupert.


Ford design team were so ashamed of it, no car model name was ever put on the boot/truck lid the sharp square pointed corners of lid look like they would cut gouge deep into your head if you banged your head, what a truly dreadful designed car.

Nobody wanted/asked for Chevy South Korean FWD junk in Europe, that finished rock bottom of JD Power survey reliably/customer satisfaction surveys reliably ever year (Vauxhall were only one place up from that in the UK you 2nd to last Opel snob Rupert) , thats not American pie Chevrolets. Simular US assembled car finished tops in similar US JD power customer satisfaction surveys.

Brits were probably dreaming getting of RHD American Pie Corvettes, Camaro & Bel Airs American dreams when they first heard Chevy was coming to Europe, instead they got crap FWD RHD Daweoo Matiz, Aveo & Spark South Korean nightmares from hell, and a epic failure in Europe.
 

·
Registered
Joined
·
7,902 Posts
Mercedes-Benz are used extensively in Europe for taxis because they're built so well they run "for ever" so the cost of ownership is lower. They also sell ranges of heavy trucks, delivery vans and buses which are seen in Europe as "premium" so they've never just been about premium luxury cars.
 

·
Registered
Joined
·
3,906 Posts
Discussion Starter · #10 · (Edited)
Mercedes-Benz are used extensively in Europe for taxis because they're built so well they run "for ever" so the cost of ownership is lower. They also sell ranges of heavy trucks, delivery vans and buses which are seen in Europe as "premium" so they've never just been about premium luxury cars.

Quality RWD low volume BMW 3 Series European sales
2011 161,614
2012 175,022
2013 201,026

Mass produced low rent cheap n' cheerful FWD compromise Mondeo European sales
2011 86,471
2012 69,871
2013 50,180

Who is supposed to be the mass producer, who is supposed the low volume quality producer in Europe these days "today" Rupert?

Long gone are the days of 375,000 RWD Cortina/Taunus sales in Europe, when Ford had the No1 best selling car every year in the EU, why has Ford's market share dropped from 32% in the UK back in Cortina days, to just 13% today without British Leyland to complete against what drivetrain in Fords line up is responsible for this massive fall off in Fords UK massive loss of UK market share with no local opposition today Rupert?
 

·
Registered
Joined
·
7,902 Posts
Who is supposed to be the mass producer, who is supposed the low volume quality producer in Europe Rupert?
Who says premium has to be low volume? If a premium manufacturer sets their targets properly, they can increase volume without sacrificing quality, as the current Mercedes-Benz S-class sales are showing.

The status quo has changed - Ford and GM are no longer king in Europe, haven't been for a long time.
 

·
Registered
Joined
·
3,906 Posts
Discussion Starter · #13 · (Edited)
RWD crap !!
Yep you can even have RWD crap Rupert, Scorpio was a cold dull anodyne, anonymous a total non entity so invisible nobody ever knew it ever existed, Ford designers were so ashamed they never attached the cars name to the lid.

But generally speaking RWD car is premium and its generating a nice tidy profit on the roof, unlike Opel.

CNN - The Worlds Most profitible cars

1. RWD/AWD Ford F-series $50bn

2. RWD/AWD GM Silverado $40bn

3. RWD/AWD Dodge Ram $18bn

3. RWD Mercedes Benz S Class $18bn

5. RWD BMW 5-series US$24bn

6. RWD BMW 3-series US$17bn

7. RWD Mercedes Benz E-Class US$13bn.

8. RWD/AWD Lexus US$12bn

9. FWD Honda Accord US$11bn.

10. RWD/AWD Jeep Grand Cherokee US$7bn.

LINK

Nope the RWD Scorpio or FWD Opel never made it onto the most profitable list Rupert, but Ford of Europe's most profitble years were the late 60's to mid 70's when all that was on offer was RWD Fords, that period in time the they knocked British Leyland 55% market share for six as you might say in English cricket Rupert with those awesome classic little RWD Capri - RWD Cortina & RWD Escorts.

Today Ford's market share is just 13% in the UK dropped massively itself, Ford have sold off Jaguar/Aston martin/Land Rover/Volvo bought with huge RWD profits made in the past in Europe, to bail out the Ford Mo Co in a silverware sell-off along with highly profitble Hertz to bail-out the FWD losers of today to buy more time, when the US pick-up truck sales went south with $148 a barrel oil shock that hit a few years ago.

Long gone are Ford of Europe's most profitable days when Ford was No1 in Europe with 375,000 RWD Cortina/Taunus sales a year, and the Escort stole the Corolla's crown 7 time on a trot as the worlds best selling car.

What was the drivetrain thats lost all that Ford UK market share, Mmmm it probably is a FWD and has a Mondeo badge on the boot lid.

In the past Ford were making loads of money in places like the UK in Europe BMW used to sell next to nothing in Europe 40 years ago. Today RWD BMW 3 Series now are outselling FWD cheap compromises Ford Mondeo 4:1 in Europe, making billions, whilst Ford lose billions in European with its FWD operations, what a change in fortunes.
 

·
Registered
Joined
·
7,902 Posts
What was the drivetrain thats lost all that Ford UK market share, Mmmm it probably is a FWD and has a Mondeo badge on the boot lid.
The RWD Sierra and RWD Granada/Scorpio are the two cars that did most damage to Ford's market share, helped by GM's ubiquitous FWD Opel Ascona/Vectra and FWD Vauxhall Cavalier/Vectra - the FWD Escorts weren't much good compared to GM's FWD Kadett/Astra.

You don't seem to grasp that Audi/BMW/Mercedes-Benz rise is because they're premium models, not where the drive axle is.

FWD Skoda/Seat/Volkswagen/Audi have seen off Ford Europe and GM Europe - it's nothing to do with the drive axle.

Judging by the number of mainstream FWD models sold in North American and Australia, it's clear that many customers there don't care either which axle is driven - not at the mainstream or budget levels.
 

·
Registered
Joined
·
3,906 Posts
Discussion Starter · #15 · (Edited)
The RWD Sierra and RWD Granada/Scorpio are the two cars that did most damage to Ford's market share, helped by GM's ubiquitous FWD Opel Ascona/Vectra and FWD Vauxhall Cavalier/Vectra - the FWD Escorts weren't much good compared to GM's FWD Kadett/Astra.

You don't seem to grasp that Audi/BMW/Mercedes-Benz rise is because they're premium models, not where the drive axle is.

FWD Skoda/Seat/Volkswagen/Audi have seen off Ford Europe and GM Europe - it's nothing to do with the drive axle.

Judging by the number of mainstream FWD models sold in North American and Australia, it's clear that many customers there don't care either which axle is driven - not at the mainstream or budget levels.
At least the RWD Sierra did eventually make No1 in the UK, the Mondeo has never been No1 spot in the UK, l rest my case.

RWD Cortina/Taunus 375,000 sales No1 best seller in Europe Ford making record breaking best ever profits in Europe.

2013 FWD Mondeo 50,000 sales No 80 in Europe making record losses Ford losing billions in Europe.

VW Group can't believe their luck that Ford produced such a crap car like the FWD Mondeo, VW were crap with not a lot of UK sales 40 years ago, nor VW Group have become No1 in the UK.

Baby Boomers like Top Gears Mr Clarkson whose first car was RWD Cortina now drive a RWD Mercedes Benz, Mercedes Benz & BMW that never used to sell absolutely nothing in the UK 40 years ago are just few thousand sales below Ford some month in the UK in sales.

VW transformed Skoda that were a joke with a 300 sales a month 40 years ago, are now topping customer satisfaction/build quality surveys with Mondeo beating quality.

BMW used to be a minor player in Europe now the RWD 3 Series can outsell every car in the FWD Opel line-up except the Corsa.

Is it not the case that the baby boomers that drove Cortina's as there first car now drive BMW & Mercedes Benz in the UK as they have improved their position in life, what has caused this massive upsurge in RWD quality auto sales in Europe sales were very low 40 years ago in places like the UK you now see BMW & Mercedes Benz popping up in the UK top 10 as the Mondeo can't make it into top 80, at the same time Ford & GM fortunes have changed as they have no high profit yielding fun to drive quality RWD car provisions in place for baby-boomers to buy these days.

Although l have to agree with you totally 100% Rupert the pig ugly dull anodyne totally anoymous Sierra & Scorpio l can only see baby boomers that bought Capri - Escort Cortina cringing at the thought seeing them raising their ugly heads ever again in Ford showrooms, cars like the ultra dull mundane Mondeo has driven ex Ford buyers into the VW camp Mondeo sat a No 80 in EU sales charts Cortina/Taunus was No1.

I owned two new VW's in the 90's absolutely hated them the worst two cars next to a Mini that l have ever owned l have never touched a FWD car ever again since, but done it at the time because l was totally pissed of with Ford & GM at the time for getting rid of RWDs that l liked at the time, l think more folk felt the same as me in the US and shifted into Camry & Accords in a silent move & a protest at the time, sad thing is a lot have never gonna come back to the Ford & GM camp Rupert, in the same way as FWD is the only meal on the menu at the low rent Kodak end of the market, a lot of ex Ford & GM buyers are now stuck at VW will be hard to win back, won't ever come back, a choice of drivetrains might help.

Did you notice how British Leyland cars ruled the 60's, RWD Ford ruled the 70 wiped out BL, Ford started to decline mid 80's, VW started to come stong in the 90's, VW group overtaken Ford sales, and into the naughties Audi BMW & Mercedes have gone from near bottom to top 10 of the UK sales charts with models that never made the top 100 in the UK 40 years ago.

Even Ford's classic ole RWD Capri was a top 10 best seller nearly all its life in the UK, can you tell me of any other sports car thats made it to the UK top 10 since Rupert Probe Puma, Cougar were all sale flops? I bet $100,000 you can't name me one sports car that made the UK top 10 since?

No wonder the youngsters are no longer interested in getting out of bed these days and bother getting a low paid job, would you want to work hard for a Ford Ka or gormless Adam, l would stay in bed as well.

Ford & Holden have pulled the plug on RWD cars in Australia just watch what happens to sales in the next few years, FWD Opel had just over year selling in Australia they left with head between their tails in 2013 finished bottom of the Ausssie sales charts with every model along side crap like the FWD Ford Mondeo near the foot of the Aussie sales charts the Commodore always sat at the No1 sales spot. All that will keep GM & Ford in some sales will be Ford Ranger & Holden Colorado, but both brands will start to sink.

Complete opposites to FWD losers Opel are the RWD/AWD F-Serie/Silverado GMC/Ram very much all thats propping up profits sales in the USA keeping the big US companies afloat.

GM only had 3 cars in the Chinese top 10 last month, all 3 were RWD Wulings.

Spotted the loser its $20 billion losers FWD Opel money pit in Europe, one day GM will wake up to it get rid of them hopefully and just have Chevy.
 

·
Registered
Joined
·
7,902 Posts
Spotted the loser its $20 billion losers FWD Opel money pit in Europe, one day GM will wake up to it get rid of them hopefully and just have Chevy.
That would mean GM abandoning Europe altogether - and having to develop Buick models themselves - all Chevrolet, Cadillac and GMC models are unsuitable for Europeans - that wouldn't be good for GM's global image.
 

·
Registered
Joined
·
3,944 Posts
Strong performance on the Mercedes side. I am not too sure about Smart. The new ForTwo and ForFour still need to make it to the showroom. So, they haven't been tried and tested yet in the marketplace. Although they have been improved technically according to the journalists who drove the ForTwo, the design hasn't changed dramatically for the better. So far, Daimler lost billions on its smallest car division.
 
1 - 17 of 17 Posts
Top