Daimler posts €6.6bn 2020 gross earnings

Photo: EPA

The German carmaker Daimler announced it had almost offset pandemic driven slowdown and eyes return to growth in the second quarter of 2021, Reuters reported. Daimler expects to overcome semiconductor chip shortage, which troubles the whole industry, by the end of the first quarter.

Chief Executive Ola Kallenius confirmed during a video conference that Daimler expects chip supply to recover in the second quarter. He said Daimler had made its sales expectations clear to its suppliers, but did not find out until end 2020 that it would face a shortage in the first quarter. In common with rivals, Daimler is racing to bring more electrified models to market to meet tightening CO2 emissions standards in Europe and China. Kallenius said that sales of electric vehicles in 2021 could double as a percentage of Daimler’s overall sales. Sales of plug-in hybrids and fully-electric vehicles made up 7.4% of Mercedes-Benz car sales in 2020, up from 2% in 2019.

Following cost savings and a faster-than-expected recovery in the auto sector, Daimler said last month its group earnings before interest and taxes for 2020 came to 6.60 billion euros. Like its German rivals BMW and Volkswagen AG, Daimler benefited from Chinese demand for high-margin luxury vehicles. “China had a remarkable recovery,” Kallenius said.

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