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.
"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.