Mercedes Bearish on 2012 Profits Due to Europe and China

Daimler today announced that earnings for its most important division, Mercedes Benz, will be below last year’s levels due to weak market conditions in Europe and China. CEO Dieter Zetsche said today in Stuttgart that the carmaking business will be less profitable in the second half than in the first, by about 10 percent.
Mercedes C-Class 1 photo
Photo: Mercedes Benz
"The overall environment in Europe is deteriorating, with more negative developments than expected," Zetsche said, according to Autonews. "There is also significantly sharpening competition in China."

Overall, Daimler is expected to keep its earnings before interest at about the same level as last year due to the strength of its other businesses.

With a new S-Class, C-Class, compact sedan and refreshed E-Class, maybe next year will be more profitable for the three-pointed star brand.
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About the author: Mihnea Radu
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Mihnea's favorite cars have already been built, the so-called modern classics from the '80s and '90s. He also loves local car culture from all over the world, so don't be surprised to see him getting excited about weird Japanese imports, low-rider VWs out of Germany, replicas from Russia or LS swaps down in Florida.
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