Daimler Holds to 2008 Forecast Despite Economic Slowdown
Germany’s Daimler said today that it was holding to its 2008 and medium-term earnings forecasts, saying that its focus on the premium market would help it to stay ahead of an economic slowdown.
The automaker said last February that its pretax earnings for 2008 would clearly pass the level of 2007 when the company generated income of $13.74 billion. Daimler has also stayed true to its prediction that the margin on its overall business would rise to 9 percent beginning in 2010.
Company CEO Dieter Zetsche referenced fears of a slowing world economy by saying, “We are well equipped to handle the current macroeconomic challenges. Zetsche pointed out that the company wasn’t financially tied to the subprime lending business, and that Daimler possesses a “high level of gross liquidity,
Comments
The Stig
Oh sure. Because as everyone knows, when the economy starts slowing down and things get tighter, people will stretch to buy themselves a Benz as a reward as opposed to say, heating their house or buying food.
BruceinCary
Mena
The Stig,
The market for MB's is different than the market for Honda's. Considering that the cheapest MS has a base price of 32k, those people have enough money to buy food and heat their homes.
The Stig
So are you saying that the economy isn't affecting even people that can afford a Benz? Not as an entire group of course and certainly not at the highest levels, but don't think for a moment that some aren't feeling the pinch or suddenly losing their jobs, or speculated on a house and overextended themselves and are now in trouble. And let's face it, if you want it can afford a loaded Accord or Camry these days, an entry level Benz isn't that far off.
mo
is that mustach real???? seeing him just reminds me of the advertisement.
Mena
Most people don't buy stripper C-class's. Look closer to $40k and that's for the C300. Way out of the Camry's price range and into a different buyer altogether. I'm not saying that some of them aren't hurting but given that C-class sales are up almost 2000 more than last year (in March) doesn't sound like too much pain to me.
southern
Well, they are in an enviable position, having plenty of cash, which will help them survive.
Companies that need capital, even on short term rates, can't find the money. There is a world wide liquidity issue. This goes well beyond "sub prime" issues......
However, with some of the 13 billion coming from one offs.....it is silly to think that the same number of sales can generate the same revenue.
In addition, it is nothing short of foolhardy to look at a world wide recession, and believe that it won't affect a car company.
Any car company.
He's whistling past the graveyard............but they are still in good shape.
Look for revenue to be down by 5/10% in 2008........
The Stig
It's easy to post sales increases when you release a new model and compare the numbers to the last year of the outgoing model
Mena
An increase is an increase and MB is doing well regardless of the economic "downturn". Rich people and well off people remain rich and well off. Look at some stats. People that have incomes of a $100k and over are growing every year while those under are losing every year. The more you get over $100k the larger the percentage increase in income every year. These people are the target market for MB, Porsche, BMW and the like. These people have so much money that ALL of the listed car companies can add the CAFE fines back into the price of their cars and STILL have record sales!!! If Toyota or GM did that, they'd both die a quick, horrible death.
hwyhobo
@Mena: Rich people and well off people remain rich and well off. Look at some stats. People that have incomes of a $100k and over are growing every year while those under are losing every year
Wow, where do you live? Rich people? In Silicon Valley $100K will barely get you by. I seriously doubt you will have enough disposable income to afford much more than a Camry, if you're reasonably frugal.
Mena
hwyhobo,
I guess you can't read very well can you? I'll quote it for you just in case your scroll wheel is broken too.
See it now?
Mark
He looks so happy to have left the Chrysler guys before all the crappy product plans he put in place hit the market. He escaped that mess extremely well. You'd think no one in Daimler understands all the crap Chrysler has on the market today were all OKed by this bozo.
hwyhobo
@Mena: You bunched it all up together in the same group and with the same meaning, so quit posturing.
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