German carmaker Mercedes-Benz has become more optimistic about its profit forecast for this year thanks to the higher sales prices of its carsAs a result, the largest luxury car manufacturer in the world now thinks that group profit this year will be slightly higher than last year.
The company previously assumed unchanged profits. The turnover forecast for the full year was also raised.
Mercedes reported second-quarter results that exceeded expectations. Net profit amounted to 3.2 billion euros, compared to 3.1 billion euros a year ago. Even though Mercedes sold fewer cars, turnover rose by 7 percent to more than 36 billion euros. This is mainly because the company is focusing on producing more expensive models with higher profit margins due to the chip shortage in the auto sector.
At Mercedes, deliveries fell 7 percent in the second quarter due to a lack of chips and logistical challenges. Like other car manufacturers, the company, therefore, gives priority to the production of the most lucrative models.
The carmaker warned of economic turbulence due to the worsening European energy crisis, high inflation, and ongoing supply chain problems. “We are increasing our vigilance and resilience to face increasingly complex macroeconomic and geopolitical challenges,” Swedish chief executive Ola Källenius said in a statement.
Due to the threat of gas rationing in Germany, Mercedes has taken steps to keep its operations running if Russia completely shuts off the gas tap. The Sindelfingen plant, where the company produces the EQS, S-Class, and Maybach electric models, can now operate without natural gas.