Daimler Q1 2020 global sales figure out, indicates a drop

KUALA LUMPUR: Automakers around the globe are witnessing heavy losses due to the coronavirus pandemic that has temporarily suspended production and halted sales.

One such automaker is Daimler AG, the partner company with brands like Mercedes-Benz, Mercedes-Maybach, and Mercedes-AMG. It recently announced its sales figures for Q1 2020, and as expected, it’s not good.

In Q1 2020, the company manufactured a total of 644,300 passenger cars and commercial vehicles. To some, it may seem like a huge number, but it is 17% low compared to the same period last year’s performance, as back then, the automaker produced 773,800 units. Global revenue also experienced a dip of 6% for the company, from EUR 39.7 billion last year, it came down to EUR 37.2 billion.

But everything is not dull for the auto giant. According to Daimler AG and Mercedes-Benz AG Chainman of the Board of Management, Ola Kallenius, the company was able to minimize losses by halting production as early as March and moving on to cost management mode. With all this, the company claims it was successful in securing the Group’s financial strength.

Kallenius said, “The COVID-19 pandemic has substantial effects on the global economy - and our company. We took the proactive decision to stop production in March and moved very quickly into cash preservation and cost management mode. Now we have started with a gradual ramp-up of our production. At the same time, we are continuing to invest in key technologies, including electrification and digitalization. They are non-negotiable elements of our future.”

But despite securing cash early, the company admits that its original forecast for the financial year 2020 is no longer applicable. Daimler expects 2020 sales of Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, and Daimler Buses to be below the previous year.

Mercedes-Benz Cars and Vans sales dropped by 16% in Q1 2020, i.e., from 652,400 units produced last year to 546,700 units this year. The low sales figure translated to a slightly lower revenue of EUR 23.2 billion.

Also, Daimler Trucks recorded a 20% dip. The company sold 92,468 units in Q1 2020 compared to 115,920 trucks in the same period last year. As for the Daimler Buses, the company sold, 5,106 units in Q1 2020, thus it wasn’t able to beat last year’s 5,526 unit mark.

Despite the setback, Daimler is confident that they’ll come out strong from the current gloomy situation. And it plans to do so by reducing its expenditure on plant, property, equipment, and R&D compared to the previous year.

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