Daimler Production Returns to Full Throttle

The recovery seen in recent months in the automotive industry has prompted German carmaker Daimler into returning to full production one month earlier than anticipated. According to Autonews, Daimler will end reduced work-hour weeks starting June, meaning 96,000 workers will return to regular hours.

“Demand for our products is currently developing very positively and global markets are recovering gradually,"
Dieter Zetsche, Daimler chairman was quoted as saying by the source. “This requires a corresponding adjustment of capacity.”

The production cut was announced by Daimler in April 2009 and was meant to reduce the manufacturer's labor spending by 2 billion euros. Until June, only three plants will operate on a reduced schedule, namely Kassel, Mannheim and Berlin.

Recently, Daimler raised its EBIT estimate to 4 billion euros, is bigger even than the estimate made by Daimler on April 19, when it said it expects an EBIT of 2,5 to 3 billion euros.

The very optimistic outlook for Mercedes-Benz Cars comes from the projected sales of the new E-Klasse models. The addition of the SLS AMG, the R-Klasse and CL-Klasse are also expected to chip in.

"The very positive earnings development is reflected by ongoing upward trends in nearly all divisions. Mercedes-Benz Cars in particular posted significantly positive earnings for the first quarter of 2010, due to increased unit sales in the E-Klasse and S-Klasse segments," Daimler says.
If you liked the article, please follow us:  Google News icon Google News Youtube Instagram X (Twitter)
About the author: Daniel Patrascu
Daniel Patrascu profile photo

Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
Full profile


Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories