Daimler AG (DDAIF)’s Mercedes-Benz Sales Saw Record Sales Increase Of 16%
Daimler AG (OTCMKTS:DDAIF) is celebrating robust sales at its Mercedes-Benz brand. Overall sales in March 2015 were the highest the division has ever achieved in a single month, since inception. Strong demand for premium cars in China, Europe and the U.S. drove the record sales, whereby 183,467 cars were sold, representing an increase of 16%.
Mercedes-Benz recorded strong March deliveries, which accelerated first quarter overall sales to 429,602 units, 15% above the same quarter a year ago. Strong demand for high-end compact cars, SUVs and C-Class sedans combined to push sales at Mercedes-Benz to the new, unprecedented levels. Daimler AG (OTCMKTS:DDAIF) believes Mercedes-Benz can do more, especially as the brand takes on rivals Audi and BMW for the podium spot in the premium brand category.
Battle for the luxury car market
Mercedes-Benz is trying to race to the top of the luxury car market with new product launches. The division released CLA Shooting Brake in the latter part of March 2015 and hopes the nameplate will be a great sales driver to take it to the podium position by 2020. Currently, Mercedes-Benz trails Volkswagen AG (ADR) (OTCMKTS:VLKAY)’s Audi and BMW in the premium-car market. However, Mercedes-Benz is growing faster than its two rivals, which gives the management hope of overtaking Audi sometime in the near-future.
Expanded collaboration with Nissan
The robust growth at Mercedes-Benz comes just when Daimler AG (OTCMKTS:DDAIF) recently announced plans for the division to enter the rapidly growing pickup truck segment. Mercedes-Benz will extend its partnership with Nissan Motor Co Ltd (ADR) (OTCMKTS:NSANY) to develop midsize trucks, targeting markets outside North America.
Daimler’s CEO, Dieter Zetsche, noted at the announcement of the pickup deal with Nissan that the move into midsize trucks was an effort to attain more global growth. The cooperation with Nissan, for midsize truck production, is expected to lower Mercedes’ barriers to entry and cut costs in a segment that is currently dominated by low-priced nameplates.
The move to pickup trucks is also expected to help Mercedes narrow its sales gap against rival BMW.
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